(Elisabeth Behrmann – Bloomberg)
BMW AG’s needs for car-battery raw materials such as cobalt and lithium will surge 10-fold by the middle of the next decade, pushing the German carmaker increasingly to forge long-term deals as shortages loom.
Purchase contracts with five- to 10-year time frames are close to being completed, the manufacturer’s head of procurement told reporters in Munich Friday. Concerns about supply bottlenecks, especially for cobalt, have prompted auto producers including Volkswagen AG to step up efforts to ensure they have enough. BMW plans to offer 25 electrified vehicles by 2025, while VW is targeting a 300-model battery-powered lineup by 2030.
“We’ve been intensively focusing on how to manage future cobalt supply for about a year now,” said Markus Duesmann, the BMW purchasing executive. “Before, it wasn’t clear just how quickly demand will accelerate.” Click here to read more.