Nemaska lands Ford as lithium hydroxide customer for Bécancour plant
Quebec’s Nemaska Lithium has signed a contract with Ford Motor Co. (NYSE: F) for delivery of lithium products including lithium hydroxide over an 11-year period. That makes Ford the first customer for the compounds that will be produced at Nemaska’s plant in Bécancour, Que. The agreement calls for the delivery of up to 13,000 tonnes of lithium hydroxide per year.
The contract also provides that Nemaska will supply Ford with spodumene concentrate from its Whabouchi mine located in the province’s Eeyou Istchee James Bay territory until the Bécancour plant begins producing lithium hydroxide. The hard rock mine has a life of 33 years, based on current planning.
The lithium hydroxide produced by Nemaska should help qualify Ford vehicles for consumer tax benefits under the U.S. Inflation Reduction Act.
“We are honoured to have Ford as a major customer of Nemaska Lithium. This long-term agreement with a global leader in the automotive industry and in the development of electric vehicles is a tribute to the strength of Nemaska Lithium’s project and the quality of the product we will supply,” said Nemaska chair Gervais Jacques.
Nemaska Lithium is owned in equal parts by Investissement Québec, the economic development agency of the Quebec government, and Livent (NYSE: LTHM), a global leader in lithium technology that has proposed to merge with Allkem (TSX: AKE; ASX: AKE). With its proven expertise as a supplier of lithium chemicals for nearly 80 years, Livent was appointed by Nemaska to undertake, on an exclusive basis, the sales and marketing efforts for Nemaska’s products. In addition, Livent is helping Nemaska with planning and construction management of both the Whabouchi and Bécancour sites.
Allkem also has a presence in Quebec, where it is advancing its James Bay lithium project towards construction. The project won federal approval in January.
