German electric vehicle manufacturer Next.e.GO Mobile has entered into a non-binding letter of intent with raw materials trader Trafigura, to secure 100% of e.Go’s future aluminium needs, as well as battery raw materials such as lithium, cobalt and copper. The five-year supply contract is expected to begin in January 2024 and run until January 2029, with provisions for a supply credit facility also included in the agreement.
Trafigura, an international commodity company based in Singapore, has previously signed a deal with lithium processing company Green Lithium in the UK in May 2022. Meanwhile, Next e.GO Mobile has recently launched the e.wave X, the successor to the Life small electric car unveiled in May. The German automaker is also planning to build a new plant in Bulgaria, which is expected to produce up to 30,000 vehicles annually from 2024.
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While e.GO Mobile is enabling battery swapping for its vehicles, it has yet to establish micromobility cooperation agreements that would facilitate widespread swapping stations with other manufacturers, as seen with Gogoro in Taiwan and elsewhere in South and Southeast Asia. Nonetheless, the company emphasizes that its agreement with Trafigura is significant, as it ensures the supply of transition and battery metals while detailing the approach that will be taken for measuring carbon intensity for each source of metals across the supply chain.
With this new partnership, Next e.GO Mobile aims to accelerate its transition towards sustainable manufacturing and supply chain practices. By securing a reliable supply of raw materials and measuring carbon intensity across the supply chain, the German automaker is taking an important step towards reducing its environmental impact and contributing to a cleaner future for the automotive industry.
