(MENAFN) Ford, the American carmaker, announced on Thursday that it has formed an agreement with two companies in Asia, PT Vale Indonesia Tbk and China’s Zhejiang Huayou Cobalt Co., to advance nickel production. This initiative aims to make the manufacturing of electric vehicle (EV) batteries more affordable. The three-way nickel project aims to produce up to 120 kilotons per year of contained nickel in the form of "mixed hydroxide precipitate," which is a lower-cost nickel product used in EV batteries.
The commercial operations are set to begin in 2026, as carmakers join the race for a swift shift to EVs. The agreement also aims to enhance Indonesia's EV manufacturing industry and support Ford’s plan to deliver two million EVs by the end of 2026.
Lisa Drake, vice president for Ford Model e EV industrialization, said in a statement, "This framework gives Ford direct control to source the nickel we need – in one of the industry’s lowest-cost ways – and allows us to ensure the nickel is mined in line with our company’s sustainability targets."
Nickel, along with copper, lithium, and cobalt, is one of the critical minerals considered a rare earth element and an essential component in many rapidly growing clean energy technologies, from wind turbines to electric vehicles, according to the International Energy Agency.
By partnering with Asian companies, Ford aims to secure a local supply of nickel and have direct control over the entire supply chain. This partnership is expected to make the manufacturing of EV batteries more sustainable and cost-effective. Moreover, the project is expected to enhance the development of the EV industry in Indonesia, where both PT Vale Indonesia Tbk and Zhejiang Huayou Cobalt Co. have operations.
The initiative is part of Ford's commitment to sustainability and reducing its carbon footprint. The company has set ambitious targets to have all its passenger cars sold in Europe to be EVs by 2030, and for its global carbon emissions to reach net-zero by 2050. By securing a sustainable and affordable supply of nickel, Ford is taking a significant step towards achieving its sustainability goals.
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