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According to BMW, high environmental standards and human rights are top priority when purchasing raw materials for the electric fleet. Research by NDR, WDR and SZ, however, show massive problems at a mine in Morocco from which BMW sources cobalt.
The German car manufacturer BMW is facing allegations in connection with a supplier. According to research by NDR, WDR and “Süddeutscher Zeitung” (SZ) there is a suspicion that the Moroccan raw materials company Managem is releasing large amounts of toxic arsenic into the environment in its mine in Bou Azzer.
In addition, current and former workers at the cobalt mine allege that Managem is not complying with international standards for the protection of workers and is taking action against critical unions.
BMW signed a contract worth 100 million euros with Managem in 2020. This provides for the delivery of cobalt, which BMW needs to build batteries for its electric fleet. Experts assume that the described conditions in the mine could conflict with German supply chain law.
“Sustainable cobalt”
BMW announced its collaboration with the raw materials company Managem in 2020. In a press release at the time, the German car manufacturer stated that it wanted to source “sustainable cobalt” from Morocco in the future. Overall, BMW wants to cover around 20 percent of its cobalt requirements through the Moroccan mine. The company justified the step, among other things, with the aim of “ethically responsible raw material extraction” and explained that compliance with environmental standards and human rights was BMW’s “top priority” when purchasing raw materials.
Research by NDR, WDR and SZ with the French medium “Reporterre” and the Moroccan medium “Hawamich” now indicate that large amounts of arsenic are released into the environment from the Bou Azzer mine. This suspicion is suggested by the analyzes of water and urine samples taken by media reporters in the area around the mine. The sample examination was accompanied by scientists from the Helmholtz Center for Environmental Research in Magdeburg, who also analyzed the samples.
“Exorbitantly” high arsenic concentration
The Bou Azzer mine is located in the Anti-Atlas Mountains in the south of the country. In addition to cobalt, ores mined underground there also contain arsenide, a substance that, when combined with water, turns into poisonous arsenic. On-site research shows that the mine operator stores large amounts of tailings on the mine site, which also comes into contact with water. Water samples in a river basin immediately below the mine show arsenic concentrations of more than 18,000 micrograms per liter. The World Health Organization (WHO) arsenic limit for drinking water is just ten micrograms per liter.
The chemist Wolf von Tümpling heads the water analysis department at the Helmholtz Center for Environmental Research and said in an interview NDR, WDR and SZ, he had never seen such high arsenic levels in water samples in his professional life. “The concentration is exorbitantly high and represents a danger. And it is definitely the case that there is a need for action.” Even samples from a water basin in an oasis about ten kilometers away from the mine still showed massively elevated arsenic levels that exceed the WHO’s drinking water limits by a factor of 40.
Accused of lack of information
Farmers live there and use this water to irrigate their plants. Because urine samples from two residents near the mine show significantly elevated arsenic levels, chemist Wolf von Tümpling believes it is urgently necessary to carry out a large-scale investigation in the region. The results of the present analyzes strongly suggested that the mine was causing the pollution.
As part of the research, the reporters were also able to speak to around a dozen former and current workers at the Bou Azzer mine, as well as several union representatives. All interviewees accused Managem of employing workers in the mine without having been previously trained or informed about possible health risks.
There is also not enough protective equipment for workers on site. Subcontractors of the mine operator often gave workers contracts with particularly short terms. In the case of work-related illnesses such as silicosis, workers would usually be fired without social security. Representatives of the Moroccan union CDT also explained in the interview that Management was taking action against critical unions. Miners could effectively no longer be members of the left-leaning CDT union today.
Management rejects allegations
When asked, Managem rejected all allegations and explained that both the company operating the mine and the subcontractors working there adhered to high labor and social standards. Particular attention is paid to extensive training for all workers and to providing the necessary protective equipment. The spokesman also pointed out that our own investigations had not found any arsenic pollution in the environment or local residents that could be traced back to the mine. Workers would undergo regular medical examinations.
The case of the Moroccan cobalt mine could also have legal consequences for BMW. The Supply Chain Act has been in force in Germany since the beginning of 2023. It obliges large German companies to examine suppliers’ compliance with human rights and environmental standards particularly closely and, if necessary, work towards improvements.
“Comprehensive review required”
The business lawyer Stefanie Lorenzen explained in an interview with NDR, WDR and SZ that prevention in the Supply Chain Act begins with the selection of the contractual partner. If there were indications that “work safety is not guaranteed, then BMW would have to dive in and take action.”
The Managem company is predominantly owned by the Moroccan royal family. Recently, the French car manufacturer Renault also signed a letter of intent with Managem to purchase cobalt. A spokesman said Renault attaches great importance to sustainability when selecting suppliers.
A BMW spokesman said they were taking all allegations seriously and were in discussions with management. We have already contacted management in the past and discussed negative reports. In this context, BMW also requested extensive documents. Based on the current results of the water analysis commissioned by the research cooperation, Managem “required a comprehensive review”. If there is misconduct on the part of management, the BMW Group would “demand immediate countermeasures.”