The first batch of European lithium for batteries was reserved for BMW

The European car manufacturer BMW AG and the company European Lithium Limited (EUR) have agreed on the future purchase of the first batch of lithium hydroxide, which will be produced by the company European Lithium in Austria. Reported by NADRA.info with reference to the announcement of EUR on the Australian Stock Exchange ASX dated 08/05/2022.
EUR and BMW AG have signed a memorandum of understanding toprovide Europe's first selection of lithium hydroxide (LiOH) for batteries. Under the MoU, the companies will work together to agree on suitable commercial terms for BMW AG to purchase LiOH produced by EUR.
EUR Chairman Tony Sage commented: “Securing our first delivery with BMW AG is another important milestone for the Company. The partnership with BMW AG is a perfect fit for EUR.”
EUR gives BMW AG the right of first priority to purchase 100% of the LiOH produced from specified resources. It is about the Austrian project EUR - Wolfsberg.
Wolfsberg is located in Carinthia, 270 km south of Vienna and 20 km east of Wolfsberg, an industrial city with a developed infrastructure, including access to the European motorway and railway network. European Lithium plans to produce 10,500 tonnes of lithium hydroxide with a capacity of 770,000 tonnes per year over a maximum period of 20 years, ensuring a long-term supply of high-quality lithium compounds to the European battery market. Although the final feasibility study is due to be published later this year, research consultants DRA Global have already estimated the net present value of the project at A$862 million ( source ).
In the event that EUR and BMW AG agree to a binding contract (execution of the memorandum of intent), BMW AG will make an upfront payment of USD 15 million, which will be repaid by equal offsetting of the lithium hydroxide produced by EUR and supplied by BMW A.G. "Funds from the prepayment will be used for the development of the Wolfsberg project, including support for the start of the construction phase and further progress in the successful implementation of the Wolfsberg project," the announcement reads.
In June 2022, BMW announced that starting in 2025, all engines for next-generation electric cars will be manufactured in Austria - at a plant in the city of Steyr. The company plans to invest about 1 billion euros in the development of competencies in this field by 2030.
"European Lithium continues the purposeful movement towards the implementation of the European lithium independence program, which provides that the production of raw materials, processing of raw materials, and manufacturing of the final product are closed in Europe. A strategic partnership with the automobile giant BMW will strengthen the position of our company in Europe. And looking into the future, the Ukrainian lithium deposits of EUR will harmoniously fit into this European program", - the non-executive director of European Lithium Mykhailo Zhernov commented on the signing of the memorandum for NADRA.info.
We will remind you at the beginning of 2022. European Lithium Limited (Australia) and the Millstone&Co group of businessmen Mykhailo Zhernov (Ukraine) and Robert Kvitkowski (Poland) agreed on the joint implementation of the Wolfsberg lithium project in Carinthia (Austria). In addition to joint work in Austria, the companies agreed on joint development of Ukrainian lithium projects.
In November 2021, it was reported that European Lithium agreed to acquire the Ukrainian LLC "European Lithium Ukraine" (the previous name of LLC "Petro-Consulting"), which is fighting in the courts for special mining permits at the Shevchenkivske lithium ore deposit and the Dobra site. The agreement will be concluded after the Ukrainian company receives special permits for lithium deposits. In February 2022, preparations began for holding a competition for the conclusion of an agreement on the distribution of production on the Dobra lithium ore site.