BMW invests in US lithium extraction technology start-up Lilac Solutions

German carmaker BMW AG (ETR:BMW) has invested in US lithium extraction technology start-up Lilac Solutions as part of a Series B financing round of USD 150 million (EUR 129.7m) as electric car makers are facing shortages for lithium raw materials.

The investment, whose details were not disclosed, was made by the carmaker's venture capital arm BMW i Ventures.

Oakland, California-based Lilac Solutions has developed a lithium extraction technology that increases the production of lithium. The investment in the start-up will give BMW access to a key element for electric cars in a time when electric vehicle makers are expected to experience a massive shortage of lithium.

The fundraise was backed also by new investors SK Materials, Sumitomo Corp's Presidio Ventures, MCJ Collective, and Earthshot Ventures.

The fresh capital will be used for ramping production of the company’s ion-exchange beads, expanding the teams of engineers and field operators, and deploying the technology globally.

(USD 1 = EUR 0.865)

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