SHANGHAI, Dec 12 (SMM) – Ganfeng Lithium, a top lithium producer in China, has signed a five-year deal to supply German high-end car giant BMW with all its lithium needed for electric vehicle batteries, Ganfeng Lithium said in a statement Wednesday.
Based in east China's Jiangxi Province, Ganfeng is the world's third-largest and China's largest lithium compounds producer in terms of production capacity.
The €540 million ($599 million) contract will provide 100% of BMW's lithium hydroxide needs for fifth-generation battery cells from 2020-2024, said Andreas Wendt, BMW's board member in charge of purchasing.
BMW said Ganfeng extracts lithium by mining hard-rock deposits in Australia under “strict sustainability standards”.
The German carmaker will also source cobalt, another key raw material for electromobility, directly from mines in Australia and Morocco from next year.