Australian miner European Lithium to supply battery-grade lithium to BMW

(Reuters) - Australia's European Lithium Ltd said on Friday it has signed an agreement with German automobile maker BMW AG to supply battery-grade lithium hydroxide, as companies look to shift towards greener sources of energy.

Australian lithium miners have been witnessing a flurry of activity in signing agreements with major automobile manufacturers to supply lithium, a key ingredient in electric vehicle batteries, as the global auto industry begins to pivot its manufacturing base toward EVs.

The firm, which is engaged in lithium exploration and development in Austria, said if a binding contract was signed after the initial non-binding Memorandum of Understanding (MoU), BMW will make an upfront payment of $15 million.

The proceeds from BMW's pre-payment will be used to start the construction phase of flagship Wolfsberg Project in Vienna, European Lithium said.

(Reporting by Jaskiran Singh in Bengaluru; Editing by Sherry Jacob-Phillips)