Ernest Scheyder

(Reuters) – Ford Motor Co (NYSE:) Co stated Monday it signed a preliminary contract to acquire lithium from a Lake Resources NL (Argentina) facility. It is the first time that the automaker had publicly disclosed where it would purchase the metal for its electric vehicles.

Ford is making a big bet on direct lithium extraction (DLE) – a fairly new technology that filters the metal from brines, uses far less land than traditional open-pit mines or evaporation pools.

General Motors Co (NYSE :), BMW and Stellantis NV, as well as other Ford competitors have signed supply agreements with DLE-related companies.

Ford intends to acquire 25,000 tonnes per year of the white metal from Lake Kachi in northern Argentina. The project, which has been developed together with Lilac Solutions Inc.

Lilac’s technology is not commercially viable, as are all DLE technologies. It has been supported by Bill Gates’ Breakthrough Energy Ventures, and other well-known investors.

Lake and Ford have not reached an agreement. They would still need to finalize a timetable for delivery.

Ford’s Chief Executive Jim Farley indicated in February, that his company is working to obtain key raw materials such as nickel, lithium and rare earths.

Jennifer Flake, spokesperson for Ford said that this is just one of many agreements Ford is exploring in order to secure raw material to fuel our aggressive EV acceleration plans.

Lake Resources, a Sydney company, is listed on Australia’s Stock Exchange. Supply deals must be made public.

Kachi is located near the Chilean border in northern Argentina. It will cost approximately $540 million to complete and be ready for use by 2024.

Lilac’s technology requires 10 tonnes of water to produce every tonne. Lilac indicated that it may use desalination plants to filter brackish waters in order not to need to drink potable water.