Santiago, Chile. May 22, 2023. Sociedad Química y Minera de Chile SA (SOC) (NYSE: SQM Santiago Stock Exchange: SQM-B, SOM-A) and Ford Motor Company announced a long-term strategic agreement to ensure the supply of high-quality lithium products for the production of electric vehicles.
Agreement for the supply of lithium for electric vehicles
The agreement between Ford and SQM will guarantee the supply of battery-grade lithium carbonate and lithium hydroxide, essential components for manufacturing high-performance electric vehicle batteries.
SQM's lithium should help Ford vehicles qualify for the US Inflation Reduction Act (IRA) consumer tax credit and will help support its plans to produce electric vehicles and expand its presence in global electromobility markets.
Sustainable lithium and production in Chile
Carlos Díaz, SQM's Executive Vice President for Lithium, said:
“We are pleased to announce this strategic agreement and appreciate Ford’s confidence in SQM’s ability to deliver battery-grade lithium products sustainably produced in Chile. As one of the world’s largest lithium producers, SQM has been investing in proprietary technology and process development for over 25 years to produce high value-added lithium products with one of the lowest environmental footprints in the industry. This alliance will allow both companies to further contribute to the decarbonization of the planet on a global scale.”
Expansion of electromobility and production of electric vehicles
Lisa Drake, Vice President, EV Industrialization, Model e at Ford, added:
“Working with strong global partners like SQM will help us make real progress in making electric vehicles more accessible to our customers in the future. SQM has established well-managed operations, a commitment to sustainability, and a proven track record of capacity growth. Working together helps Ford strengthen our plans to help secure the lithium we need and eliminate risk to our production plans for millions of electric vehicles over time.”
