BASF, Nornickel partner in EV battery materials project in Finland

German chemicals producer BASF (ETR:BAS) has joined hands with Russian mining and smelting group Norilsk Nickel in a project for materials used in the production of electric vehicle (EV) batteries.

The partnership is part of BASF’s plan to build a renewables-powered battery materials factory in Harjavalta, Finland, located in proximity to Nornickel’s nickel and cobalt refinery. The manufacturing base will use renewable electricity, including from hydropower, wind and biomass facilities in the region, and will serve the European automotive market, the German group said on Monday. Its construction is part of a EUR-400-million (USD 456.4m) investment plan.

According to a long-term deal, BASF will source nickel and cobalt feedstocks for the new factory from Nornickel’s metal refinery. It expects the new manufacturing site to be launched late in 2020, supplying battery materials for around 300,000 EVs annually. “With the investment in Harjavalta, BASF will be present in all major regions with local production and increased customer proximity further supporting the rapidly growing electric vehicle market,” said Kenneth Lane, president of BASF’s catalysts division.

BASF noted it plans to build more similar production plants for battery materials and is now evaluating potential locations across Europe.

(EUR 1.0 = USD 1.141)

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