BASF Supports European Electric Vehicle Value Chain...Invests in Battery Material Production Facility in Germany

[Asia Economy Reporter Hwang Yoon-joo] Global chemical company BASF is establishing a new material production facility within its existing battery material production complex. This is part of a multi-stage investment plan to support the European electric vehicle value chain.

On the 13th, BASF announced that it will have a cathode material production capacity in Schwarzheide, Germany, that meets the demand of gigafactories. As a result, it will be able to supply batteries using BASF materials for approximately 300,000 electric vehicles annually. BASF expects to respond to the growing demand in the European electric vehicle market by enabling rapid production scale expansion through the modular design and infrastructure of the Schwarzheide plant.

The plant will use precursors produced in the previously announced Harjavalta region in Finland, and the operation start dates for both plants are expected to be in 2022. BASF will make large-scale investments worth hundreds of billions of Korean won in the two plants operating from 2022.

Through investments in Finland and Germany, BASF will be able to provide a stable and continuous supply chain in the European market, supporting nickel and cobalt supply, precursor production, and cathode material production all within one region. Additionally, as the first supplier with cathode material production capacity in key regions of Asia, the United States, and Europe, BASF plans to gradually strengthen its global leadership in the electric vehicle battery material market.

The Schwarzheide plant in Germany will temporarily utilize an eco-friendly combined heat and power plant (CHP) and plans to introduce renewable energy in the future, while the Harjavalta plant in Finland will actively use renewable energy sources such as hydropower, wind power, and biomass. With this combination of various renewable energy resources, BASF will be able to provide cathode materials with a reduced carbon footprint.

Meanwhile, BASF’s investments in Harjavalta, Finland, and Schwarzheide, Germany, are aimed at supporting the European Union Commission’s goal of establishing a battery production value chain in Europe and are part of the 'Important Projects of Common European Interest (IPCEI)' approved on December 9, 2019.

This content was produced with the assistance of AI translation services.