Compass Minerals and Ford Motor Company Sign Non-Binding Agreement for the Supply of Battery-Grade Lithium

Published 2 years ago via 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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