Lake Resources says it has signed a non-binding memorandum of understanding to provide about 25,000 tonnes/year of lithium from Argentina to the Ford Motor Co, Kallanish reports.

The lithium for the US-based automaker will come from the Australia-based company’s flagship Kachi lithium brine project, and the potential offtake agreement would cover 50% of the production of the project in Catamarca province at the southern end of the Lithium Triangle in northwest Argentina, the companies say in an announcement. Under the MOU, the companies will negotiate a final offtake agreement.

“As we’ve shared, Ford is sourcing deeper into the battery supply chain,” says Lisa Drake, Ford’s vice president, EV Industrialisation. “This is one of several agreements we’re exploring to help us secure raw materials to support our aggressive EV acceleration.”

Says Lake managing director Steve Promnitz: “Both Lake and Ford see this as an opportunity for a potential long-term agreement with the ability to scale up environmentally responsible production and participate in Lake’s other projects to ensure high-quality lithium products are available to Ford.”

The developing Kachi project is expected to produce about 50,000 t/y of lithium. Last month, Lake signed an MOU with Japan’s Hanwa Co for 25,000 t/y. It is one of four Lake projects in Argentina that together cover 220,000 hectares.

The project covers 74,000 hectares on the Salar de Carachi Pampa with 4.4 million t of lithium carbonate equivalent that will provide 25 years of production with 50,000 t/y. It is about 22 kilometres west of El Penon in the Puna region. It is among the 10 largest lithium brine projects in the world. Operations could begin in 2024. A pilot plant is expected to begin operations soon. Lake is partnering with technology expert US-based Lilac Solutions.