Friday 17 July 2020

BMW signs €2bn battery cell supply contract with Northvolt

BMW has signed a long-term contract worth €2 billion (£1.8bn) for battery cells with the Swedish company Northvolt.

The battery cells will be produced at the Northvolt gigafactory currently under construction in Northern Sweden.

Under this contract, Northvolt will obtain 100% of the energy needed to produce the battery cells from wind and hydroelectric power and will source the cobalt and lithium needed as key raw materials for cell production from mines that fulfil high sustainability standards.

Oliver Zipse, Chairman of the Board of Management of BMW AG, said: "To make an effective contribution to climate protection, we aim to improve our products’ overall environmental balance, from resources to recycling.

"That is why we now have a contractual agreement with our cell manufacturers that they will only use green power to produce our fifth-generation battery cells.”

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