Compass Minerals and Ford Motor Company Sign Non-binding Agreement for Supply of Grade Lithium Batteries

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Agreement Following Similar MOUs with LG Energy Solution, Together Representing the Majority of Phase One Lithium Production Expected from Compass Minerals

OVERLAND PARK, right? — 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 lithium-grade products from a lithium brine development project at its facility solar evaporation Ogden, Utah.

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Under the terms of the MOU, Compass Minerals and Ford will work together to create a two-phase arrangement that secures significant quantities of Compass Minerals production for Ford from 2025. The two companies will continue negotiations in good faith, aiming to reach a definitive agreement. offtake and supply agreements.

Compass Minerals previously 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 starting operations in 2025.

“Ford is a brand that has long been associated with innovation, and we are excited about the potential to help drive 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 implementing our plans to start supplying the market in 2025.”

Lisa Drake, Ford Model e vice president, EV Industrialization added: “Ford is looking for ways to source critical battery cell feedstocks in North America. We look forward to exploring a relationship with Compass Minerals to help unlock lithium in this mineral-rich region of America to help bring EVs to customers who want an electric future.”

As previously announced, Compass Minerals is pursuing sustainable development of the approximately 2.4 mMT LCE resource in Great Salt Lake, which is 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 safe delivery anywhere and anytime to help solve nature’s challenges for customers and society. The company’s salt products help keep roads safe during winter weather and are used in a variety of other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve crop quality and yield, while supporting sustainable agriculture. In addition, the company is pursuing the 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 refractory company. Compass Minerals operates 12 production and packaging facilities with nearly 2,000 employees across the US, Canada and the UK. Visit kompasminerals.com for more information about the company and its products.

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About Ford Motor Company

Ford Motor Company (NYSE:F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where everyone is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities, and ongoing customer relationships to enrich the experience and deepen customer loyalty. Ford develops and delivers innovative and must-have Ford trucks, sports vehicles, commercial vans and Lincoln luxury vehicles, and connected services. In addition, Ford is building a leadership position in mobility solutions, including self-driving technology, and providing financial services through Ford Motor Credit Company. Ford employs about 182,000 people worldwide. More information about the company, 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 regarding the company’s lithium development projects, including the expected timing and production capacity, and the potential implementation and terms of any supply agreements tie. 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 discrepancy may be due to a number of factors including the factors identified in the “Risk Factors” and “Management Discussion and Analysis of Financial Condition and Operating Results” sections of the Company’s Transitional and Quarterly Reports on Forms 10-KT and 10-KT. Q, as well as the company’s other SEC filings. The Company is under 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 a preliminary assessment to determine the lithium resources in Kompas Minerals’ existing operations in accordance with applicable SEC regulations, including Subsection 1300. Under Subsection 1300, the mineral resource is not a mineral reserve and does not demonstrate economic viability. The company’s mineral resource estimates, including lithium resource estimates, are based on many factors, including assumptions regarding extraction rates and duration of mining operations, and on-site resource quality. For example, process technologies for the commercial extraction of lithium from brine with low lithium and high impurities (especially magnesium) are still being developed. Accordingly, there can be no assurance that all or part of the lithium mineral resources identified by the company’s initial assessment will be converted into economically extractable mineral reserves.

Check out the source version on businesswire.com: https://www.businesswire.com/news/home/20220720006069/en/

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Contact

Media Contact
Rick Axthelm
Chief Public Affairs and Sustainability Officer
+1,913,344.9198
MediaRelations@compassminerals.com

Investor Contact
Valerie Tymosko
Interim Senior Director of Investor Relations
+1,913,344.9496
InvestorRelations@compassminerals.com

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