Areas of application in the automotive industry.

  • Main areas of application: Cathode material in battery cells (high-/low-voltage batteries)
  • Small quantities: Transmission, engine and electronic components (e.g. speakers)

Raw-material-specific risks.

  • Negative environmental impacts, such as deforestation and loss of biodiversity, contamination of soil and groundwater (especially due to tailings), as well as air pollution
  • High CO2 emissions from mining (energy mix) and, in particular, from pyro- and hydrometallurgical processing
  • Hazards from flotation tailings and ageing dams
  • Violation of the rights of local communities and indigenous groups
  • Violation of workers’ rights
  • Weak government regulation
  • Future risks of deep-seabed mining

Measures taken by the BMW Group.

  • Comprehensive ESG risk assessment carried out and critical mining countries and regions identified. Known risks are higher in the main mining countries of the Global South, in the so-called “lateritic belt”, including Indonesia, the Philippines, Papua New Guinea and New Caledonia
  • Increased transparency in the nickel supply chain up to the fifth generation of high-voltage batteries, as well as for low-voltage batteries. Binding requirements for supply chain transparency established in individual contract documents with suppliers
  • Enabling of direct suppliers in the tendering process, with a request for them to be audited and/or obtain recognised certification for smelting plants/refiners (RMI standard) and mines (IRMA standard)
  • Cross-vendor initiative as part of the Raw Materials Working Group of Drive Sustainability: Nickel risk profile developed for all automotive manufacturers (OEMs): the so-called Raw Material Outlook
  • High standards for secondary raw material content, which is both resource-efficient and reduces CO2, compared to primary extraction
  • Creation of a closed-loop material cycle for reuse of the raw materials nickel, lithium and cobalt from high-voltage batteries at Chinese locations