Compass Minerals and Ford Motor Company Sign Non-Binding Agreement for the Supply of Battery-Grade Lithium
July 21 2022 - 7:30AM
Business Wire
Agreement Follows Similar MOU with LG Energy
Solution, Together Representing a Majority of Compass Minerals’
Expected Phase One Lithium Production
Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today announced the signing of a non-binding
memorandum of understanding (MOU) to explore supplying Ford Motor
Company (Ford) with a battery-grade lithium product from its
lithium brine development project at its Ogden, Utah, solar
evaporation facility.
Under the terms of the MOU, Compass Minerals and Ford will work
together to create a two-phase arrangement that secures a
significant quantity of Compass Minerals’ production for Ford
starting in 2025. Both companies will continue good-faith
negotiations, aiming toward a definitive offtake and supply
agreement.
Compass Minerals previously has announced an expected annual
commercial production capacity of 30 kMT to 40 kMT lithium
carbonate equivalent (LCE) for the project, with an initial
phase-one capacity of approximately 10 kMT LCE coming online by
2025.
“Ford is a brand long associated with innovation, and we are
excited about the potential of helping fuel their growth as a
leading domestic electric vehicle manufacturer,” said Chris
Yandell, head of lithium for Compass Minerals. “We are pleased with
the continued interest in our lithium resource and look forward to
executing on our plan to begin supplying the market in 2025.”
Added Lisa Drake, Ford Model e vice president, EV
Industrialization: “Ford is looking at ways to source essential
battery cell raw materials in North America. We look forward to
exploring a relationship with Compass Minerals to help unlock the
lithium in this mineral-rich region in America to help bring EVs to
customers who want an electric future.”
As previously announced, Compass Minerals is pursuing the
sustainable development of an approximately 2.4 mMT LCE resource on
the Great Salt Lake, readily available for extraction through
existing permits, water rights and operational infrastructure at
the company’s Ogden facility, the largest of its kind in the
Western Hemisphere.
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 a minority 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, that is 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 and deepen the loyalty of
those customers. Ford develops and delivers innovative, must-have
Ford trucks, sport utility vehicles, commercial vans and cars and
Lincoln luxury vehicles, as well as connected services.
Additionally, Ford is establishing leadership positions in mobility
solutions, including self-driving technology, and provides
financial services through Ford Motor Credit Company. Ford employs
about 182,000 people worldwide. More information about the company,
its products and Ford Credit is available at
corporate.ford.com.
Forward Looking Statements and Other Disclaimers
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements about the company's
lithium development project, including its timing and expected
production capacity, and the potential execution and terms of any
binding supply agreement. 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/20220720006069/en/
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
Investor Contact Valerie Tymosko Interim Senior Director
of Investor Relations +1.913.344.9496
InvestorRelations@compassminerals.com
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