BMW To Buy Cobalt Directly from Australia
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German carmaker BMW will buy cobalt, a key component for electric vehicle (EV) batteries, directly from mines in Australia and Morocco to ensure they are not produced by child labor, an executive said on Tuesday.The announcement came as the London Metal Exchange (LME) launched an initiative under which it could ban or delist brands that are not responsibly sourced by 2022 to help root out metal tainted by child labor or corruption.
Andreas Wendt, BMW board member responsible for procurement, told a briefing in Paris that the new supply of cobalt would be used in the carmaker’s next generation of EVs in 2020.
The world’s largest known reserves of cobalt are found in the Democratic Republic of Congo, where the raw ingredient is often mined by small, artisanal operations and supply chains are not strictly monitored.
BMW said last year it was exploring ways to improve working conditions for mining cobalt in Congo through a pilot project.
Questions & Answers
Q.Why is BMW buying cobalt directly from Australia and Morocco?
Why is BMW buying cobalt directly from Australia and Morocco?
BMW is making direct purchases of cobalt to ensure the material is not produced using child labour. This move supports ethical sourcing for the key component in their electric vehicle batteries.
Q.When will the new cobalt supply be used in BMW's electric vehicles?
When will the new cobalt supply be used in BMW's electric vehicles?
The new cobalt supply will be integrated into BMW's next generation of electric vehicles starting in 2020. This timing was confirmed by Andreas Wendt, BMW's board member for procurement.
Q.What initiative did the London Metal Exchange launch regarding metal sourcing?
What initiative did the London Metal Exchange launch regarding metal sourcing?
The London Metal Exchange launched an initiative allowing it to ban or delist brands by 2022 if their metals are not responsibly sourced. This aims to combat child labour or corruption in the supply chain.
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