The announcement came as the London Metal Exchange (LME) launched an initiative under which it could ban or delist brands that are not responsibly sourced by 2022.
BMW Mining News
Carmakers seeking to boost sales of electric cars are struggling to get their hands on cobalt, a scarce but vital component in the production of batteries.
Industry sources say automaker interest bodes well for the contracts, but new contracts usually take years to gain traction and a lack of interest from steelmakers could slow the process.
NMC cathodes currently account for nearly 28% of global EV sales, forecast to grow to 63% by 2027.
BMW already signed up as the factory's main client.
The search for cobalt, a key component of the battery-powered auto fleets of the future, has arrived on BMW AG’s doorstep with a discovery of an ore deposit not far from its i3 electric city car plant.
“We’ve been intensively focusing on how to manage future cobalt supply for a year now. Before, it wasn’t clear just how quickly demand will accelerate.”