Albemarle has agreed to supply battery-grade lithium to BMW Group to help the automaker manufacture electric vehicles (EVs).
In addition to supplying the BMW Group with lithium hydroxide, the two companies will partner on technology for safer and more energy dense lithium-ion batteries.
Albemarle said the multi-year agreement is of significant volume and value, and is slated to be one of the company’s largest ever global deals.
“Albemarle is committed to building a more resilient world,” Albemarle energy storage president Eric Norris said.
“We welcome the opportunity to work alongside the BMW Group to further enable the clean energy transition.”
This is the second supply agreement between the companies, but the first to include a shared interest in research opportunities to accelerate lithium battery innovations.
The agreement is set to take effect in 2025, part of Albemarle’s mission as a global leader in providing essential elements for mobility, energy, and connectivity.
The announcement follows the company’s highest ever net sales reported in its 2023 full-year financial results. Albemarle banked $US9.6 billion ($14.7 billion) for the year, a 31 per cent jump on 2022.
“Looking ahead, we are taking actions to enhance our financial flexibility, while advancing near-term growth and preserving future opportunities to create value,” Albemarle chief executive officer Kent Masters said.
“As a global leader for the end-markets we serve, we remain confident about the projects in our portfolio and our ability to leverage our world-class resources and industry-leading technologies.”