The Munich-based car manufacturer BMW is demanding improvements at the mine of a cobalt supplier in Morocco.

An audit commissioned by BMW revealed high concentrations of arsenic in waste and water collection systems on the mine site itself and in the immediate vicinity, a BMW spokesperson explained on Wednesday. It could not be ruled out that material could be released into the downstream region during heavy rainfall.

It was not possible to establish a clear link to the current mining operations, he said. However, because an influence cannot be ruled out beyond doubt, the mine operator Managem has initiated immediate measures, such as the construction of drainage ditches or the removal of deposits in the river at the mine and at a nearby dam. "A precise package of measures for permanent improvement in the area of water management is being developed and the BMW Group is following up on its concrete implementation," it continued. A social audit had not identified any major violations; irregularities in the recording of working hours or the distribution of first aid kits would be rectified promptly. "BMW and Managem continue to work together constructively, and the implementation of the packages of measures is equally prioritized by both sides," it said.

In November, media reports stated that there had been serious violations of environmental and occupational health and safety regulations at the Bou Azzer mine in Morocco. In particular, significantly excessive levels of arsenic had been detected in water samples, according to reports by the Süddeutsche Zeitung, NDR and WDR. The mine is operated by Managem. The company is majority-owned by the holding company of the Moroccan royal family and, according to its own information, operates a number of mines in several African countries. BMW has been sourcing cobalt from the mine for its current electric vehicles since 2022.

Cobalt is needed for electric car batteries, among other things. By far the largest part of the world's cobalt deposits are located in the Congo, where there are repeated accusations of child labor, especially in small mines. The Munich-based company sources around a fifth of its cobalt requirements from Morocco; the rest comes from Australia.

(Report by Christina Amann, edited by Ralf Banser. If you have any queries, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)