BMW strikes five-year lithium deal for electrical car batteries
- German high-end auto giant BMW said Wednesday it had struck a deal with a Chinese supplier covering all of its own lithium needs for electric car batteries for the forthcoming five years.
The 540-million-euro ($599 million) contract with China's Ganfeng Lithium provides 100% of (BMW's) lithium hydroxide needs in 2020-24, Andreas Wendt, BMW's board member responsible for buying, said in a statement.
Faced with tough new emissions regulations at the EU from next year and increasing public disquiet about climate change, BMW - like other German carmakers - plans a slew of all-electric and hybrid versions in the next several years.
It's set to provide 25 ""electrified"" vehicles across its line-up by 2023, with over half completely battery-powered.
Their need for raw materials will expand accordingly. By 2025, for lithium, they expect to need approximately seven times the amount they do now, Wendt said.
Sourcing of metals essential to battery creation, such as cobalt and lithium, has come under increased public scrutiny since carmakers around the globe ramp up their electrical car offerings.
BMW stated Ganfeng's lithium is mined in Australia under the “strictest sustainability” criteria.
It will from next year supply the cobalt for its batteries straight from mines in Australia and Morocco.