BASF has selected Harjavalta, Finland, as the first location for battery materials production serving the European automotive market.
The plant will be constructed adjacent to the nickel and cobalt refinery owned by Norilsk Nickel (Nornickel).
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This investment is part of BASF’s EUR400m (US$461m) multi-step investment plan announced last year and builds upon initial battery materials production started in Harjavalta in 2018. Start-up is planned for late 2020, enabling the supply of around 300,000 full electric vehicles per year with BASF battery materials. The new plant in Harjavalta will use locally generated renewable energy sources, including hydro, wind and biomass.
Additionally, BASF and Nornickel have signed a long-term, market-based supply agreement for nickel and cobalt feedstocks from Nornickel’s metal refinery. The agreement will establish a locally-sourced and secure supply of raw materials for battery production in Europe.
BASF is also evaluating additional locations in Europe for the construction of new production plants for battery materials.
“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 BASF Catalysts division president, Kenneth Lane.
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By GlobalData“Combined with our Nornickel cooperation, we are creating a strong platform that connects the efforts between industry leaders in raw material supply and battery materials technology and production.”
For his part, BASF Battery Materials SVP, Jeffrey Lou added: “The co-location of BASF’s new plant and Nornickel’s metal refinery in Harjavalta will enable access to a local nickel and cobalt supply. Our high-nickel cathode materials are key to deliver enhanced energy density and vehicle range to our customers. With this world-scale production facility, BASF will be able to serve the European e-mobility growth strategies of key OEMs and cell suppliers with reliable supply and close collaboration.”
Sergey Batekhin, SVP Sales, Procurement and Innovation at Nornickel, noted: “The agreement is an important element of Nornickel’s broader strategy to expand its presence in the global battery materials market and establish long-term cooperation with leading producers of cathode active materials.”
“We believe electric vehicles have significant potential to transform the global nickel industry, and Nornickel – as the world’s leading supplier of refined nickel products – is positioned to support this transformation.”
