The German automaker, BMW, 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 ($113 million).
The deal follows a memorandum of understanding on the direct purchase of cobalt signed between the two parties in January 2019.
BMW, which 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.
The company is systematically driving the electrification of its vehicle fleet and seeking to secure its raw material needs for battery cells.
“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.