The contract is for a term of five years (2020 - 2025).
Rabat – German automobile company BMW announced yesterday, July 9, the signing of a €100 million cobalt supply contract with the Moroccan mining company Managem Group.
With the order the BMW group will cover about a fifth of its cobalt needs for the manufacture of fifth generation of battery cells, a statement from BMW said.
The contract is for a term of five years (2020 – 2025).
This agreement falls within the Memorandum of Understanding (MoU) that the two parties signed in January 2019 in the city of Marrakech.
Andreas Wendt, BMW AG responsible for Purchasing and Supplier Network , waid cobalt is an important raw material for electromobility and that the recently signed contract with Managem will continue to secure the company’s need for battery cells.
“We are systematically driving electrification of our vehicle fleet. By 2023, we aim to have 25 electrified models in our line-up – more than half of them fully-electric,” added Wendt.
Wendt emphasized the important aspect of BMW’s corporate strategy, pledging the company’s awareness of its responsibilities in dealing with the extraction and processing of cobalt.
“Cobalt and other raw materials must be extracted and processed under ethically responsible conditions” he said.
The highest sustainability standards apply to cobalt extraction at the Managem Group, according to the German giant.
Morocco is the world’s 12th biggest exporter of cobalt, thanks to the Bou-Azzer mine, 120 kilometers south of Ouarzazate in the Sahara desert.
The recently signed agreement follows Morocco’s adoption of new legislation to attract investment in the field of mining and improve its performance.
The Moroccan Minister of Energy and Mining, Aziz Rabbah presented to the government council Draft Decree No. 2.18.442 on May 28. The draft law aims to establish judicial mechanisms to enhance the attractiveness of national and foreign investments in the mining sector in the regions of Tafilalet and Figuig, eastern Morocco.
The mining region is known for being rich in minerals such as Zinc, Baryte, Manganese, Iron, Copper, and Fluorite.
The strategy also seeks to boost mineral exploration with a budget of MAD 4 billion ($416 million), as well as creating 30,000 jobs.
