BMW Signed a € 540m Deal with a Chinese Company

Business | December 12, 2019, Thursday // 14:37| Views: | Comments: 0
Bulgaria: BMW Signed a € 540m Deal with a Chinese Company www.pixabay.com

German automotive giant BMW has announced that it has signed a deal with a Chinese supplier to cover all its lithium needs for battery electric vehicles over the next five years.

“The projected order volume totals €540 million. In this way, the BMW Group is securing 100% of its lithium hydroxide needs for fifth-generation battery cells in its high-voltage batteries.

Alongside cobalt, lithium is one of the key raw materials for electromobility. With the signing of this contract, we are securing our lithium needs for battery cells. We aim to have 25 electrified models in our line-up by 2023 and more than half will be fully electric. Our need for raw materials will continue to grow accordingly. By 2025, for lithium alone, we expect to need about seven times the amount we do today.” Andreas Wend, a BMW board member responsible for the deal said.

Due tot the rigorous new EU emissions regulations from next year and the growing public concern about climate change, BMW - like other German car makers - plans to produce a number of all-electric and hybrid car models in the coming years.

The group is expected to offer 25 electrified vehicles in its lines by 2023 - more than half fully battery-powered.

"Our need for raw materials will continue to grow [...]. By 2025, for lithium alone, we expect to need about seven times the amount we do today,"  Wend said.

The extraction of metals vital for the production of batteries, such as cobalt and lithium, has been subject to increased public scrutiny since car manufacturers around the world began to increase their proposals for electric vehicles.

BMW said Ganfeng's lithium is being mined in Australia according to the "strictest standards of sustainability".

In the meantime, it became clear that next year, the company’s cobalt battery will come directly from mines in Australia and Morocco.

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Tags: BMW, deal, electric vehicles, Ganfeng
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