BMW (BMWG.DE) relies on efficient design and recycling to lower battery prices, its finance head said on Friday, unlike other competitors investing in mining.
“We oppose mining investments. We prioritize recycling auto parts and other things “finance head Nicolas Peter remarked.
BMW has its battery cell research center in Germany. Still, it has outsourced large-scale development to CATL (300750. SZ) and EVE Energy (300014. SZ) to make battery cells in China and Europe for multi-billion euros.
BMW intends to achieve this with its mid-decade “Neue Klasse” EV-only line by lowering battery prices, most of which originate from raw materials.
VW is investing in mining and battery manufacturing to control the supply chain.
On Thursday, Mercedes-Benz announced a “basic choice” to dedicate money to mining and the opening of a raw material office in Canada, where it inked a raw materials deal last year.
Peter suggested investing in technology like hydrogen-powered autos that need fewer raw key minerals to save prices.
Peter said the company does not need to build massive cell recycling facilities because its joint venture in China has a battery cell recycling plant.
He said it would prove demand for recycled raw materials through electric car sales growth and work with partners to recycle at scale.
“With our commercial development, we are providing the desire to invest, but we do not need to construct massive recycling facilities for battery cells,” Peter stated.
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