Luxury vehicle company Bayerische Motoren Werke (BMW) has transferred US$15 million ($22.52 million) to Critical Metals Corp’s (NASDAQ:CRML) subsidiary ECM Lithium.
The funds are in relation to the offtake of battery grade lithium hydroxide from European Lithium’s (ASX:EUR) Wolfsberg Lithium Project in Austria, which is to be offset against lithium hydroxide delivered to BMW.
In October 2022, Critical Metals entered into a memorandum of understanding (MoU) for a key customer arrangement with BMW, which upon execution of definitive agreements would create one of the largest direct pre-pays from an original equipment manufacturer (OEM) in Europe in the lithium mining industry.
Under the MoU, BMW will supply 100% of the project’s zone one lithium product, including the US$15 million pre-payment.
Critical Metals CEO and Executive Chairman Tony Sage this pre-payment further strengthens the company’s balance sheet and allows Critical Metals to further advance its development strategy.
“We are pleased to move our partnership with BMW forward and look forward to supporting the production of their electric vehicles in Europe in the years to come, contributing to a more sustainable and domestic battery supply chain.”
European Lithium, owner of the Wolfsberg Project, holds 83.03% of Critical Metals’ shares.
Critical Metals is a mining company focused on mining critical metals, and producing strategic products essential to electrification and next generation technologies for Europe and its partners.
Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270km south of Vienna, Austria. Wolfsberg is fully permitted and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market.
The company has a long-term offtake with a leading global automaker based in Europe and is expected to benefit from European Lithium’s JV with Obeikan Group. In addition, Critical Metals Corp owns a 20% interest in prospective Austrian mineral projects previously held by European Lithium.
Write to Aaliyah Rogan at Mining.com.au
Images: Critical Metals
