BMW signs deal with Australian mining company
Electric vehicles from Germany’s BMW could soon be using lithium sourced from an Australian mining giant.
An Australian mining company has entered an agreement to supply BMW with battery-grade lithium.
The company, named European Lithium, has signed a memorandum of understanding with BMW to supply the carmaker with lithium – a key component in the production of electric vehicle batteries.
The company owns the Wolfsberg Lithium Project – a mine located 270km south of Vienna in Austria.
Unlike other Australian lithium companies, the location of the mine in Europe means a significantly shorter distance for the materials to travel to the car, lowering costs as well as the overall carbon footprint.
BMW has been vocal about lowering its own emissions during new-car production, as well as the carbon footprint of its suppliers over the coming years.
The agreement gives BMW the right (but not the obligation) to purchase 100 per cent of the mine’s first haul of battery-grade lithium, with the deal set to be worth tens of millions of dollars.