German original equipment manufacturer (OEM) Rheinmetall Automotive has received a supply order for aluminum engine blocks from an undisclosed German carmaker, worth €100mn ($117.7mn).
The OEM will begin full-scale production of the engines at its Neckarsulm plant in Germany by 2023, it indicated in a statement on Thursday. The supply contract is for at least seven years, extending past 2030. The company will use low-pressure sand casting to produce the engine parts, which will be made of high-grade cast aluminum.
The company said that the contract was a step forward in its sustainability mission and that the buyer was considerate about the company’s carbon footprint.
Rheinmetall did not disclose its customer’s name but hinted that it was awarded the contract due to the buyer’s proximity to the plant. Audi operates a 225,000 units per year assembly plant in Neckarsulm. It plans to produce its flagship EV, the e-Tron GT, among other models at this facility.