By Cecilia Butini

 

BMW AG said Thursday that it plans to buy cobalt for the production of its electric vehicles from Moroccan mining company Managem Group as part of a five-year contract worth around 100 million euros ($113 million).

BMW, the German auto maker that produces Mini and Rolls Royce cars alongside the BMW brand, said the deal would supply it with a fifth of the cobalt it needs for its EV production. The rest will be sourced from Australia, BMW said.

"By 2023, we aim to have 25 electrified models in our line-up--more than half of them fully electric," BMW Board Member Andreas Wendt said.

"Our need for raw materials will increase in line with this. For cobalt alone, we expect our needs to roughly triple by 2025," said Mr. Wendt, who is responsible for purchasing and supplier network on BMW's board.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

July 09, 2020 04:25 ET (08:25 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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