Renault Group and Managem Group, a Moroccan player in the mining and hydrometallurgy sector, signed a memorandum of understanding (MoU) aimed at securing the supply of low-carbon and responsible cobalt sulfate for electric batteries. Under the terms of the agreement, Managem Group will supply 5,000 tonnes of cobalt sulfate per year for a period of 7 years, with first delivery in 2025.
After an engineering study, Managem Group plans to invest in the construction of a factory located within the Guemassa industrial complex, Morocco in order to transform cobalt ore into cobalt sulfate. Through this partnership, Renault Group has guaranteed a significant supply of cobalt sulfate, representing an annual battery production capacity of up to 15 GWh.
This direct cooperation between a car manufacturer and a mining player guarantees a long-term traceability system for the supply chain of cobalt for batteries. It also aims to reduce the impact on the environment, in particular thanks to the know-how of Managem Group which has optimized energy efficiency at its facilities through the growing use of green energies, more than 80% of which come from wind power.
This agreement includes the possibility for Managem Group, Renault Group and its Alliance partners to advance further cooperation in the supply of manganese and copper sulphate, as well as on the recycling of battery materials in short loops.
Following the creation of the industrial center dedicated to the electric vehicle Renault ElectriCity, Renault Group is positioning itself as a key player of more efficient, low-carbon and reusable batteries. The Group aims to reduce the carbon footprint of its batteries by 20% by 2025 and by 35% by 2030, compared to 2020.
Combined with the partnership with Vulcan to secure low-carbon lithium and Terrafame for low-carbon nickel sulfate, this agreement marks a new step towards reducing the environmental footprint of electric vehicles and the Group’s objective of carbon neutrality in Europe by 2040.
This agreement will support the development of the Moroccan automotive industry and strengthen Morocco’s positioning as a platform for the production and export of equipment, motor vehicles and now strategic and critical materials of Moroccan origin such as cobalt, manganese and copper for the manufacture of batteries. It is part of the commitments made by Renault Group to the Kingdom of Morocco, to develop the Renault ecosystem in country by increasing local sourcing to €2.5 billion from 2025 and a target of €3 billion.
Managem Group is an active member of the Cobalt Committee of the LME (London Metal Exchange) and of the Cobalt Institute (CI). In 2019, the responsible production of Cobalt by Managem Group was confirmed by certification according to the standards of the Responsible Minerals Initiative (RMI), as well as by evaluations by NQC and ECOVADIS. Managem Group recently joined the FCA (Fair Cobalt Alliance).