Ford Motor announced new lithium deals for EV batteries at an investor event Monday while backing earnings guidance for the full year. But F stock eased near a key technical level.
Lithium Deals For EV Batteries
Lithium is a key battery material for electric vehicles, or EVs. Ford announced these partnerships Monday:
- Albemarle is set to supply more than 100,000 metric tons of lithium hydroxide, to support nearly 3 million EV batteries.
- Compass Minerals will supply lithium carbonate from a new project in Ogden, Utah.
- EnergySource Minerals will supply lithium hydroxide from a new project in Imperial Valley, Calif.
- Canada's Nemaska Lithium will supply up to 13,000 tons of lithium hydroxide per year over 11 years.
EnergySource Minerals is privately held. Nemaska Lithium trades as "NMX" on the Toronto stock exchange.
Ford Back Earnings Guidance
On Monday, Ford again reiterated its expectations for 2023 adjusted EBIT of $9 billion-$11 billion and adjusted free cash flow of about $6 billion.
At Monday's event, the automaker also discussed the path to an adjusted EBIT margin of 10% in 2026 and about 8% EBIT margin for its EV business.
Ford is targeting 2 million EVs per year by 2026.
F Stock, Lithium Stocks
Shares of Ford Motor nudged down 0.2% to 11.63 on the stock market today, still below the 50-day moving average. F stock remains well below the 200-day line.
ALB stock narrowed its early rally to 1.2%, closing at 206.58. CMP stock added 0.7%.
Traditional automakers, including Ford and General Motors, continue to shift away from combustion-engine cars to EVs, pioneered by Tesla.
Investors have grown wary about the ambitious and costly shift to electric vehicles amid macroeconomic headwinds and risk of recession. They are also closely watching increased competition in the EV market.
On Monday, GM confirmed plans for an all-electric version of its flagship Cadillac Escalade SUV. The Escalade electric model, called IQ, will launch later this year.
By 2030, GM plans to make Cadillac a fully electric brand.
GM stock gained 0.6% Monday, also below key levels. TSLA stock climbed 4.9%, rising further above the 50-day average but below the 200-day line.
Meanwhile, Plug Power announced three electrolyzer deals for green hydrogen with industrial customers in Europe. PLUG stock, a hydrogen fuel-cell play, soared 14%. Shares have sunk 46% in the past year.
