BMW strikes five-year lithium deal for electric car batteries

German high-end car giant BMW said Wednesday it had struck a deal with a Chinese supplier covering all its lithium needs for electric vehicle batteries for the coming five years.

The 540-million-euro ($599 million) contract with China's Ganfeng Lithium will provide "100 percent of (BMW's) lithium hydroxide needs" from 2020-24, Andreas Wendt, BMW's board member in charge of purchasing, said in a statement.

Faced with tough new emissions regulations in the EU from next year and growing public disquiet about climate change, BMW - like other German carmakers - plans a slew of all-electric and hybrid models in the coming years.

It is set to offer 25 "electrified" vehicles across its line-up by 2023, with more than half completely battery-powered.

"Our need for raw materials will grow accordingly. By 2025, for lithium alone, we expect to need about seven times the amount we do today," Wendt said.