BASF and Nornickel sign MoU to invest 400 million to build a plant in Europe

According to foreign media reports, BASF and Russia's PJSC MMC Norilsk Nickel signed a memorandum of understanding (MoU), and the two sides conducted exclusive cooperation negotiations on the future supply of battery materials and raw materials in Europe, thereby realizing the production of lithium-ion batteries in Europe. Nornickel Group is the world's largest nickel and palladium manufacturer, and a major global manufacturer of platinum and copper. Nornickel Group also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulfur.

BASF plans to invest 400 million euros (about 458 million U.S. dollars) to build an industry-leading cathode material manufacturing plant in Europe. According to the expected agreement, BASF will obtain the required raw materials from the Nornickel metal smelter in Harjavalta, Finland, and Nornickel will also provide BASF with nickel and cobalt feed from Russian mines at market prices. In this cooperation, Nornickel will also provide BASF with a lot of experience in metal smelting and trading.

With its joint venture in Japan, BASFTODA Battery Materials LLC, and its production facility in Elyria, Ohio, BASF has become an important supplier of cathode materials in the Asian and U.S. markets. The collaboration with Nornickel will lay the foundation for BASF's cathode material research and development and business growth in Europe.

The strategic cooperation will leverage the market position and expertise of both parties to provide a safe, stable and optimized supply chain for European electric vehicle lithium battery manufacturers. Nornickel said that the Nornickel base in Harjavalta has unique advantages and can form a vertical integration with the production of battery precursor cathode materials in the European market.

Several lithium battery manufacturers have announced or started projects to build factories in Europe to produce lithium batteries for electric vehicle powertrain systems. Producing battery cathode materials in Europe is undoubtedly an important measure to promote the development of this industry in Europe. In addition, the development of a regional supply chain for lithium battery materials in Europe will reduce the supply chain risks of lithium battery manufacturers and automobile manufacturers.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.