Securing tender element reserve for battery cells: BMW Group signs supply agreement with Ganfeng for tolerable lithium from mines in Australia

Munich. As partial of a electromobility expansion, the
BMW Group is deepening a existent business attribute with Ganfeng
Lithium Co., Ltd. shaped in Jiangxi (China). The dual companies have
sealed a supply agreement for a lithium indispensable as a pivotal tender material
for battery cells. “The projected sequence volume totals 540 million
euros. In this way, a BMW Group is securing 100% of a lithium
hydroxide needs for fifth-generation battery cells in a high-voltage
batteries,” pronounced Dr. Andreas Wendt, member of a Board of Management
of BMW AG obliged for Purchasing and Supplier Network.
agreement is for a tenure of 5 years (2020 – 2024).


“Alongside cobalt, lithium is one of a pivotal tender materials for
electromobility. With a signing of this contract, we are securing
a lithium needs for battery cells,” continued Wendt. “We aim to have
25 electrified models in a choice by 2023 – and some-more than half will
be wholly electric. Our need for tender materials will continue to grow
accordingly. By 2025, for lithium alone, we design to need about seven
times a volume we do today.”


Sustainability and confidence of supply are critical factors in the
enlargement of electromobility. For a BMW Group’s purchasing experts,
ethically obliged tender element descent and estimate begins
right during a start of a value chain: They are intensively involved
via a battery dungeon supply bondage – all a approach down to the
mines themselves. Compliance with environmental standards and respect
for tellurian rights have extensive priority. “Sustainability is an
critical aspect of a corporate plan and plays a executive purpose in
expanding electromobility. We are wholly wakeful of a responsibilities:
Lithium and other tender materials contingency be extracted and processed under
ethically obliged conditions,” underlined Wendt. Ganfeng extracts
lithium by mining supposed hard-rock deposits in Australia underneath the
strictest sustainability standards.


The BMW Group already publishes a countries of start of a cobalt
it uses on a website (see here).
For a arriving fifth era of battery cells, a association has
also restructured a supply bondage and will be sourcing both lithium
and cobalt directly from 2020, origination a tender materials accessible to
a dual battery dungeon manufacturers, CATL and Samsung SDI. This ensures
full clarity over where tender materials come from. Cobalt will be
sourced directly from mines in Australia and Morocco in a future.
Supply contracts will safeguard a company’s confidence of supply adult to
2025 and beyond.


The BMW Group also recently announced that it is augmenting a order
volume for battery cells from CATL to 7.3 billion euros (contract:
2020 to 2031) and also sealed a long-term agreement value 2.9 billion
euros with Samsung SDI for a fifth-generation electric expostulate trains
(contract: 2021 to 2031). “In this way, we are securing a long-term
battery dungeon needs. Every dungeon era is awarded in global
foe to a heading manufacturer from both a record and a
business perspective. This ensures we always have entrance to a best
probable dungeon technology,” combined Wendt.


The BMW Group’s fifth-generation electric expostulate trains from 2021 on
will also be constructed wholly but regulating singular earths. “This means
we will no longer be contingent on their availability,” emphasised Wendt.


Extensive in-house imagination via whole value sequence for
battery dungeon technology

The BMW Group possesses endless in-house imagination via the
whole value sequence for battery dungeon technology. In-house battery
prolongation takes place during BMW Group Plants Dingolfing (Germany) and
Spartanburg (USA), and during a BBA plant in Shenyang (China). The BMW
Group has also localised battery prolongation in Thailand and is working
with a Dräxlmaier Group in this area.


In mid-November, a association non-stop a Battery Cell Competence
Centre in Munich. The aim of a cunning centre is to advance
battery dungeon record and deliver it into prolongation processes.
The association is investing a sum of 200 million euros in a location,
that is set to emanate adult to 200 jobs. The prolongation of battery cell
prototypes creates it probable to wholly analyse and know cell
value origination processes. “Whether we set adult a possess standard
prolongation of cells during a after date will mostly count on how the
retailer marketplace develops,” according to Wendt.


The BMW Group has shaped a corner record consortium with Swedish
battery manufacturer Northvolt and Umicore, a Belgian developer of
battery materials, for a purpose of building a dungeon technology
essential to electromobility. The team-work will concentration on formulating a
complete, tolerable value sequence for battery cells in Europe,
fluctuating from expansion and prolongation all a approach to recycling.
Recycling of battery components plays a wilful purpose in shutting the
materials cycle as distant as probable and maximising reuse of raw
materials as direct for battery cells grows.


BMW Group is a colonize in electromobility – 25 electrified
models by 2023

The association will have 25 electrified models in a choice by 2023.
The basement for this is supposing by stretchable car architectures for
fully-electric vehicles, plug-in variety and models with combustion
engines that capacitate a association to respond fast to changing
conditions. More than half of a 25 models will be wholly electric.
The BMW Group will double a sales of electrified vehicles between
2019 and 2021. The association expects to see a high expansion bend adult to
2025: Global sales of electrified vehicles should boost by an
normal of over 30 percent each year. In Europe, a association is also
following an desirous expansion logic: The aim is to boost the
commission of electrified vehicles in a new car swift to a
entertain in 2021 and to a third in 2025; by 2030, they should account
for half of sales volumes.


As an e-mobility pioneer, a BMW Group is already a heading supplier
of electrified vehicles. By a finish of 2019, a association aims to have
some-more than half a million vehicles with fully-electric or plug-in
hybrid expostulate trains on a roads. Within dual years, a BMW Group will
offer 5 fully-electric series-production vehicles: Alongside the
BMW i3*, with some-more than 160,000 units built to date, this year will
see a start of prolongation of a fully-electric MINI* during Plant
Oxford. This will be followed in 2020 by a fully-electric BMW iX3
from Shenyang (China) and, in 2021, by a BMW iNEXT, that will be
constructed in Dingolfing, and a BMW i4 from Plant Munich.


Please hit us if we have any questions:


Corporate Communications


Saskia Eßbauer, Corporate Communications

[email protected],
Telephone: +49 89 382 18364


Mathias Schmidt, Head of Corporate and Culture Communications

[email protected],
Telephone: +49 89 382 24544



Email: [email protected]


The BMW Group


With a 4 brands BMW, MINI, Rolls-Royce and BMW Motorrad, a BMW
Group is a world’s heading reward manufacturer of automobiles and
motorcycles and also provides reward financial and mobility services.
The BMW Group prolongation network comprises 31 prolongation and assembly
comforts in 15 countries; a association has a tellurian sales network in
some-more than 140 countries.

In 2018, a BMW Group sole over 2,490,000 newcomer vehicles and
some-more than 165,000 motorcycles worldwide. The distinction before taxation in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 Dec 2018, a BMW Group had a
workforce of 134,682 employees.

The success of a BMW Group has always been shaped on long-term
meditative and obliged action. The association has therefore established
ecological and amicable sustainability via a value chain,
extensive product shortcoming and a transparent joining to
conserving resources as an constituent partial of a strategy.