Compass Minerals Signs Binding Multiyear Agreement to Supply Ford Motor Company with Battery-Grade Lithium Carbonate
22 May 2023 - 9:00PM
Business Wire
Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today announced the signing of a binding,
multiyear supply agreement to provide Ford Motor Company (Ford;
NYSE: F), a global auto manufacturer, with battery-grade lithium
carbonate from its Ogden, Utah, lithium brine development
project.
“We are excited to formalize a long-term relationship with Ford,
one of the most trusted and iconic brands in the automotive
industry and a leader in the transition to vehicle
electrification,” said Kevin S. Crutchfield, president and CEO. “We
look forward to building an alliance that will support Ford’s
electric vehicle strategy by providing a reliable, domestic lithium
supply.”
Under the agreement, Compass Minerals will deliver up to 40% of
its planned, phase-one battery-grade lithium carbonate to Ford for
a five-year term once production begins.
As previously announced, the company expects an annual
commercial production capacity of approximately 35 kMT lithium
carbonate equivalent (LCE) once fully operational, with an initial
phase-one capacity of approximately 11 kMT battery-grade lithium
carbonate coming online in 2025.
“This is an exciting period of innovation and growth for EVs,”
said Lisa Drake, Ford’s vice president of EV Industrialization,
Model e. “The work we are doing with Compass Minerals is promising
– and a key part of Ford’s EV growth and the diversification of our
sustainable EV supply chain.”
Compass Minerals is pursuing the sustainable development of an
approximately 2.4 mMT LCE resource on the Great Salt Lake,
utilizing synergies with its existing sulfate of potash, salt and
magnesium chloride production asset. Lithium will be the fourth
essential mineral produced from the same unit of brine, bringing
additional efficiencies to the operation and value to all
stakeholders, including the State of Utah.
About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of
essential minerals focused on safely delivering where and when it
matters to help solve nature’s challenges for customers and
communities. The company’s salt products help keep roadways safe
during winter weather and are used in numerous other consumer,
industrial, chemical and agricultural applications. Its plant
nutrition products help improve the quality and yield of crops,
while supporting sustainable agriculture. Additionally, the company
is pursuing development of a sustainable lithium brine resource to
support the North American battery market and is owner of Fortress
North America, a next-generation fire retardant company. Compass
Minerals operates 12 production and packaging facilities with
nearly 2,000 employees throughout the U.S., Canada and the U.K.
Visit compassminerals.com for more information about the company
and its products.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan, committed to helping build a better world,
where every person is free to move and pursue their dreams. The
company’s Ford+ plan for growth and value creation combines
existing strengths, new capabilities and always-on relationships
with customers to enrich experiences for customers and deepen their
loyalty. Ford develops and delivers innovative, must-have Ford
trucks, sport utility vehicles, commercial vans and cars and
Lincoln luxury vehicles, along with connected services. The company
does that through three customer-centered business segments: Ford
Blue, engineering iconic gas-powered and hybrid vehicles; Ford
Model e, inventing breakthrough EVs along with embedded software
that defines exceptional digital experiences for all customers; and
Ford Pro, helping commercial customers transform and expand their
businesses with vehicles and services tailored to their needs.
Additionally, Ford is pursuing mobility solutions through Ford
Next, and provides financial services through Ford Motor Credit
Company. Ford employs about 174,000 people worldwide. More
information about the company and its products and services is
available at corporate.ford.com.
Forward Looking Statements and Other Disclaimers
This press release may contain forward-looking statements
including, without limitation, statements about the company's
lithium development project, including its expected production
capacity, timing and sustainability. These statements are based on
the company’s current expectations and involve risks and
uncertainties that could cause the company’s actual results to
differ materially. The differences could be caused by a number of
factors including those factors identified in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” sections of the company’s Transitional
and Quarterly Reports on Forms 10-KT and 10-Q, as well as the
company’s other SEC filings. The company undertakes no obligation
to update any forward-looking statements made in this press release
to reflect future events or developments, except as required by
law.
The company has completed an initial assessment to define the
lithium resource at Compass Minerals’ existing operations in
accordance with applicable SEC regulations, including Subpart 1300.
Pursuant to Subpart 1300, mineral resources are not mineral
reserves and do not have demonstrated economic viability. The
company’s mineral resource estimates, including estimates of the
lithium resource, are based on many factors, including assumptions
regarding extraction rates and duration of mining operations, and
the quality of in-place resources. For example, the process
technology for commercial extraction of lithium from brines with
low lithium and high impurity (primarily magnesium) is still
developing. Accordingly, there is no certainty that all or any part
of the lithium mineral resource identified by the company’s initial
assessment will be converted into an economically extractable
mineral reserve.
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version on businesswire.com: https://www.businesswire.com/news/home/20230519005431/en/
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
Investor Contact Brent Collins Vice President, Investor
Relations +1.913.344.9111 InvestorRelations@compassminerals.com
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