Bayerische Motoren Werke AG abbreviated as BMW Group (ETR:BMW) has stated that it will invest more than 2 billion euros in Hungarian plant in Debrecen by 2025
The BMW Group is building a plant for high-voltage batteries for the NEW CLASS vehicles at its location in Hungary. The company will thus create more than 500 additional jobs and will invest more than 2 billion euros in the construction and commissioning of the entire plant by the end of 2025.
Milan Nedeljković, Board Member for Production at BMW AG, says:“The most modern plant in the world is being built in Debrecen. Here we are setting new industry standards in vehicle production with our iFACTORY. Our investments underscore the consistency with which we implement e-mobility.”
The further investments were also positively received by the Hungarian government. Péter Szijjártó, Minister of Foreign Affairs and Trade: “The BMW Group plant in Debrecen is a symbol of the successful Hungarian economic policy of the last twelve years. The plant combines environmental protection and competitiveness – and that’s much more than we originally planned.”
Debrecen plant starts recruiting and training
“We are currently looking for new colleagues – both locally and throughout Hungary, in order to shape the future of the BMW Group plant in Debrecen together,” says Hans-Peter Kemser, President and Managing Director of BMW Manufacturing Hungary Kft. The plant will start in Autumn 2023, together with local training partners, a dual training program in our own training center.
László Papp, Mayor of Debrecen, emphasizes the role of the BMW Group for the city: “With its investment in Debrecen, the BMW Group is not only creating new jobs, but also underscoring its long-term commitment to our city. Together we create a prosperous future.”
Short distances: high-voltage battery production on the factory premises
The high-voltage battery production will be set up on the premises of the vehicle plant in Debrecen, whose construction started around six months ago. Markus Fallböhmer, Head of Battery Production at the BMW Group, explains: “The BMW iFACTORY also stands for short logistics paths. The close link between battery production and vehicle production is part of our strategy.”
In Debrecen, the round battery cells of the next generation are installed in the high-voltage battery housing – a metal frame that is integrated into the underbody of the vehicle. The start of production of the 6th generation high-voltage batteries will take place parallel to the start of vehicle production. All high-voltage batteries for the vehicles built at the Debrecen plant are assembled on site. The battery production covers an area of more than 140,000 m². The construction work has recently started.
6th generation batteries: even more customer benefits and sustainability
The battery is crucial for the competitiveness of an electric vehicle. With the next battery generation, the charging speed will increase by up to 30 percent and the range will improve by up to 30 percent.
The BMW Group places special emphasis on keeping the CO 2 footprint and the consumption of resources for production as low as possible right from the supply chain. For the production of the battery cells, the cell manufacturers will use cobalt, lithium and nickel, some of which consists of secondary material, i.e. raw materials that are not newly mined but are already in the cycle. Together with the obligation to only use green electricity from renewable energies for the production of battery cells, the BMW Group will reduce the CO 2 footprint in battery cell production by up to 60 percent compared to the current generation of battery cells.
BMW traded at 85.84 this Wednesday November 30th, increasing 1.09 or 1.29 percent since the previous trading session. Looking back, over the last four weeks, BMW gained 7.95 percent. Over the last 12 months, its price fell by 3.16 percent.
Meanwhile Alkemy Capital Investments plc (LON:ALK) has announced that its wholly owned subsidiary Tees Valley Lithium Ltd has received full planning permission to build Europe’s largest lithium hydroxide refinery at Teesside, UK, to supply the burgeoning electric vehicle battery industry.
HIGHLIGHTS
• TVL has been granted full planning permission from Redcar & Cleveland Borough Council to establish Europe’s largest – and the UK’s first – world-class lithium hydroxide refinery, located at the Wilton International Chemicals Park in the Teesside Freeport.
• Following completion of a full Environmental Impact Assessment (EIA), in conjunction with local consultation over an eighteen-month period, TVL’s US$300 million zero waste facility is now shovel-ready with production forecasted to commence in 2025, generating over 1,000 local jobs.
• Utilising state-of-the-art electrochemical processing and powered by 100% certified green energy, TVL’s zero waste lithium refinery will be the largest in Europe – producing 96,000tpa of low-carbon battery-grade lithium hydroxide once in full production – equivalent to 15% of projected European demand.
Following detailed studies, which included the completion of an Environmental Impact Assessment (EIA), TVL has received full planning permission from Redcar and Cleveland Borough Council to construct the UK’s first world-class lithium hydroxide refinery at the Wilton International Chemicals Park in the Teesside Freeport.
A key driver for TVL’s site selection at the Wilton International Chemicals Park is the ‘plug & play’ advantages of the site, which boasts a plethora of existing infrastructure and readily accessible utilities including water, gas, steam and electricity. This, in turn, will allow TVL to begin construction without delay.
The refinery will be capable of producing both lithium hydroxide and lithium carbonate sourced from imported high grade feedstock from South America and lithium producers located in Australia and elsewhere.
Building a European lithium processing facility will reduce the regional dependence on China, which currently controls 90% of the world’s lithium refining capacity, however, is expected to require all of this production domestically in order to deliver its US$11 trillion Carbon Neutral 2060 plan.
To meet the demand for the switch to electric vehicles within Europe, over 700GW of gigafactory capacity has been announced with an annual projected demand of 650,000 tonnes for locally refined lithium chemicals.
TVL’s processing refinery is expected to produce enough lithium hydroxide to supply 100% of the forecasted automotive demand in the UK by 2030, with a further 35% of its total production available for export to other countries in Europe and elsewhere.
TVL is currently in advanced discussions with a number of offtake customers, including European gigafactories and electric vehicle OEMs. These customers are increasingly focussed on price, transparency and low embedded carbon, when sourcing high grade lithium products.
To address this challenge, the Company plans to import high-grade lithium feedstock in the form of technical grade lithium carbonate and lithium sulphate from spodumene producers in Australia and elsewhere. This, in turn, helps to avoid loading up the world’s shipping fleets with low grade spodumene concentrates and reduce waste.
By sourcing low carbon feedstock and powering an electrochemical refining process with offshore wind and green hydrogen supplied by energy multinational bp’s HyGreen Teesside project, TVL aims to supply its UK and European customers with the world’s lowest-carbon lithium hydroxide.
TVL has appointed Wave International, a specialist process engineering and project delivery company, as its lead engineering and technology partner, a company with over twenty years mining industry experience and boasts an industry-leading skillset in lithium refining.
Wave has already completed a Class 4 Feasibility Study for TVL into establishing a multi-train lithium hydroxide refinery at the Wilton International Chemicals Park in the Teesside Freeport. As part of these studies, metallurgical testwork has been completed yielding ultra- pure lithium hydroxide exceeding industry standards and validated by two third party cathode active material manufacturers.
Sam Quinn, Director of Alkemy commented:
“The full endorsement from the Redcar & Cleveland Borough Council is a critical step in taking TVL to its next phase of developing the UK’s first lithium hydroxide refinery and spearheading a brand-new industry in Europe and a vital part of the Fourth Industrial Revolution.
This decision allows us to rapidly advance with our engineering studies ahead of construction, due to commence in 2023. The burgeoning demand from electric vehicle OEMs highlights the urgent need for significant lithium refinery capacity in Europe, which currently does not exist.
Our strategic decision to locate in the Wilton International Chemicals Park, with direct access to comprehensive infrastructure and services and within the Teesside Freeport enables us to get into first production by 2025 and begin supplying our low carbon battery-grade lithium to customers spanning the UK and Europe.”
Ben Houchen, Tees Valley Mayor commented:
“Tees Valley Lithium is yet another multi-million-pound project, creating good-quality jobs on the Teesside Freeport. With plans now approved this shovel ready project will create 1,000 jobs and should be up and running in just a couple of years.”
Frans Caljé, Chief Executive Officer of PD Ports commented:
“It’s absolutely fantastic to see more inward investment coming to the Tees Valley, this time in the form of the Tees Valley Lithium project. PD Ports absolutely welcomes any project that is going to generate real jobs and prosperity for our region and we look forward to seeing the Lithium Hydroxide refinery brought to fruition to aid growing demand as we all work towards a more sustainable future.”
Ryan Hanrahan, Director and CEO of Wave International commented:
“This approval is a significant milestone for the combined UK/European green energy industry, with the TVL refinery being the first merchant lithium converter to achieve full approval status in the region. With a secured site, full approvals and a feasibility study TVL are now an advanced project and a leader amongst their peer group.”
Alkemy Capital Investments plc is focussed on developing projects in the energy transition metals sector.
Alkemy’s wholly-owned subsidiary Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK.
Alkemy is listed on the main market of the London Stock Exchange under the ticker ALK and on the Frankfurt Stock Exchange under the ticker JV2.
