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BMW strikes five-year lithium deal for electric car batteries

11 December 2019, MVT 21:55
(COMBO) This combination of pictures created on December 09, 2019 shows the logo of German chemicals company BASF (up) pictured at the company's headquarters in Ludwigshafen, western Germany, on February 24, 2017, and the BMW logo seen at the unveil event for the BMW Vision iNEXT autonomous electric car, ahead of the LA Auto Show, November 27, 2018 in Los Angeles. - The EU's powerful anti-trust authority on Monday approved billions of euros in subsidies from seven member states as Europe seeks to make up lost ground in batteries. The mega subsidy of 3.2 billion euros ($3.5 billion) from Germany, France, Italy, Poland, Belgium, Sweden and Finland will go to a consortium of 17 companies and will help generate an extra five billion euros in private investment, a statement said. Companies involved in the battery projects include German car giant BMW and chemical multinationals BASF and Solvay. (Photos by Daniel ROLAND and Robyn Beck / AFP)
11 December 2019, MVT 21:55

German high-end car giant BMW said Wednesday it had struck a deal with a Chinese supplier covering all its lithium needs for electric vehicle batteries for the coming five years.

The 540-million-euro ($599 million) contract with China's Ganfeng Lithium will provide "100 percent of (BMW's) lithium hydroxide needs" from 2020-24, Andreas Wendt, BMW's board member in charge of purchasing, said in a statement.

Faced with tough new emissions regulations in the EU from next year and growing public disquiet about climate change, BMW -- like other German carmakers -- plans a slew of all-electric and hybrid models in the coming years.

It is set to offer 25 "electrified" vehicles across its line-up by 2023, with more than half completely battery-powered.

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

Sourcing of metals vital to battery production, like cobalt and lithium, has come under increased public scrutiny as carmakers around the world ramp up their electric vehicle offerings.

BMW said Ganfeng's lithium is mined in Australia under the "strictest sustainability standards".

Meanwhile it will from next year source the cobalt for its batteries directly from mines in Australia and Morocco.

Frankfurt am Main, Germany | AFP

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