BMW prepares for the future trends
BMW announced on Thursday that it had invested in Jetti Resources, a company with technology to extract more copper from low-grade resources and manufacture metal with a low carbon footprint.
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The German carmaker and other automobile companies are negotiating agreements to assure a steady supply of copper and other essential raw materials. This is because they expect shortages in the future years due to the anticipated increase in electric car manufacturing.
BMW’s venture capital firm, BMW i Ventures, made an undisclosed investment in privately held Jetti as part of the automaker’s goal of having at least 50% of its vehicles be all-electric by 2030.
“This new process has the potential to improve the environmental footprint and integrity of our supply chain, even with growing demand for resources like copper,” said Wolfgang Obermaier, head of indirect goods and services for BMW.
S&P Global predicts shortages because demand for the metal used in the power sector is expected to rise 100% to 50 million tonnes by 2035. Moreover, electric vehicles require around 2.5 times more copper than internal combustion automobiles do. BMW appears to be playing the long game wisely.
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BMW decided to step up its game by using Jetti’s technology because it uses leaching instead of smelting, which cuts CO2 emissions by almost half. Freeport-McMoRan Inc., BHP Group, and asset manager BlackRock Inc. are also shareholders in the company.
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