BMW shares are higher Monday, after the German luxury car maker has agreed a deal with Swedish startup Northvolt and Belgium materials and recycling group, Umicore, to increase the lift cycle of electric car batteries.
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By 1230 BST, BMW shares were 0.94% higher at €75.19. The stock has been moving lower in recent weeks.
BMW makes further provision for electrification
BMW has invested in the new factory being built by Swedish startup, Northvolt, as it has entered an agreement with the business and recycling group Umicore, to develop a new process in which batteries used in electric cars, can be recycled.
The joint technology consortium is most interested in developing “battery cells sustainable by establishing a closed life cycle loop. This starts with a recyclable cell design and continues with a manufacturing process that mostly uses renewable energy,” Northvolt said.
This will help support the long-term development of electric cars which is a fast-growing area of interest for most global car makers. It will also lead to the development of high-tech jobs in this area and help cement Europe’s position as lead developer in the industry.
Battery cell centre of excellence
BMW’s investment will support the creation of a battery cell centre of excellence which will work to develop, not only a sustainable way to recycle car batteries, but also to develop the industrialisation process of battery cells in Europe.
“The sustainability approach of Northvolt makes it a highly appealing company for us, that was furthermore very receptive to our ideas,” said Klaus Fröhlich, Member of the Board of Management of BMW AG, responsible for Development.
Northvolt’s CEO and Co-Founder Peter Carlsson, meanwhile, added that the two firms have “a shared commitment to reduce C02 emissions from transportation.”
BMW has already begun manufacturing modules with supplied battery cells, with regards to its electric vehicle plans. This new consortium will give BMW access to all the expertise it needs to further improve the sustainability of battery cell production in Europe.