Caterpillar can provide a battery-powered fleet and other equipment innovations, while Albemarle's North American-produced lithium is to be made available for use in Caterpillar battery production.

The two companies will also explore opportunities to collaborate on research and development of battery cell technology and recycling techniques.

"At Albemarle, we are committed to building a more resilient world. Our partners are critical to achieving that impact, and this collaboration with Caterpillar exhibits how we ‘walk the talk' to pioneer what's next. It's a win-win-win scenario, in which we are both customers and suppliers of each other, and the innovation we pursue together benefits the world," said Eric Norris, Albemarle's Energy Storage President.

Earlier this year, Cat signed a deal with Nouveau Monde Graphite to supply the former's Matawinie Mine with a zero-exhaust emission fleet, supporting infrastructure, and services.

"Beyond supplying infrastructure and materials, the battery-powered Caterpillar machinery and potential improvements to cell technology will open up new possibilities for the future of sustainable mining," said Norris. "We look forward to replicating at Kings Mountain the same progress that we have made toward social and environmental responsibility at our Salar de Atacama operation, where we became the first lithium producer in the world to complete a third-party audit and publish our report through the Initiative for Responsible Mining Assurance's (IRMA) stringent standard."

In November 2022, Caterpillar revealed a successful demonstration of its first battery electric 793 large mining truck and a significant investment to transform its Arizona-based proving ground into a sustainable testing and validation hub of the future. 

"Caterpillar is developing lithium-ion batteries and battery-electric products today for our customers around the world who, like Albemarle, are driving toward net zero carbon emissions goals," said Rod Shurman, senior vice president of Electrification and Energy Solutions at Caterpillar. "The agreements for lithium offtake and potential collaboration on R&D signed today will help to advance this work and further build out a secure, resilient and sustainable value chain for electrified equipment across the Caterpillar portfolio, while also supporting Albemarle's journey to more sustainable operations."

"Through this collaboration with Caterpillar, Albemarle is creating a new pathway where we can make a global impact - outside of the leadership we're known for with EVs," said Anita Natesh, Albemarle's Commercial VP for North America, Europe and India for Energy Storage. "Together with Caterpillar, we will bring more sustainable mining equipment to market… and in the process, demonstrate that our commitment to powering the clean energy transition extends beyond our collaborations with auto OEMs."

"By working together, we have the opportunity to support Albemarle's goal of becoming the first zero-emissions lithium producer in North America while contributing to a more sustainable future for the mining industry," said Rob Hoenes, senior vice president of Resource Industries Operations and Products at Caterpillar.

The announcement comes on the heels of Albemarle's recent award of $90 million from the Department of Defense, to help support the expansion of domestic mining and the production of lithium for the nation's battery supply chain.

Kings Mountain is expected to produce 50,000 metric tons of lithium carbonate equivalent (LCE) per year, enough to power approximately 1.2 million electric vehicles. Albemarle is currently in the process of obtaining the necessary permits to open the Kings Mountain mine. The company has received a $90 million grant from the Department of Defense to support the mine's development and expects the mine to be operational by 2027.