Ford delays buying lithium from Liontown, reverses plan for claiming EV tax credit

[Ford logo on their main dealership store Belgrade. Ford is an American car and automotive manufacturer, the second biggest in the USA]
BalkansCat

Ford (NYSE:F [https://seekingalpha.com/symbol/F]) will delay buying lithium, the main component in electric vehicle batteries, from Australian producer Liontown Resources (OTCPK:LINRF [https://seekingalpha.com/symbol/LINRF]) amid a slowdown in EV sales.

The automaker will not receive any lithium from Liontown's (OTCPK:LINRF [https://seekingalpha.com/symbol/LINRF]) Kathleen Valley project in 2027 and 2028, the miner disclosed in an exchange filing.

The volume to be delivered to Ford (NYSE:F [https://seekingalpha.com/symbol/F]) in the future will also be halved to 256,250 tons, in exchange for Liontown deferring repayments due to Ford on its $300M loan by one year.

"The changes to the offtake agreement afford Liontown the opportunity to place further volumes in the market, including giving it the ability to sell additional tons into the spot market to encourage transparent pricing or to pursue new strategic partnerships," the miner stated [https://www.ltresources.com.au/wp-content/uploads/2025/10/61289185.pdf].

In other news, Ford (F [https://seekingalpha.com/symbol/F]) reversed [http://www.reuters.com/business/autos-transportation/ford-reverses-plan-claim-ev-tax-credits-following-gm-2025-10-09/] a plan that would have allowed dealers to offer [https://seekingalpha.com/news/4500033-ford-gm-programs-ev-tax-credit] a $7,500 tax credit on EV leases after the subsidy expired September 30, _Reuters _reported.

"Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today," a spokesperson said. GM (GM [https://seekingalpha.com/symbol/GM]) announced a similar move [https://seekingalpha.com/news/4502736-general-motors-wont-claim-tax-credit-but-fund-its-own-ev-incentive] on Wednesday.

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