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BASF picks German state of Brandenburg as battery materials production site

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Update time : 2020-05-08 08:03:54

By Ludwig Burger

FRANKFURT (Reuters) - Chemicals huge BASF <BASFn.DE> above Wednesday picked a place at the eastern German condition of Brandenburg though its second European Battery materials factory, isolate of a 400 million euro investment project ought tap into the growing electric vehicle market.

The option of locality gives another fling ought the economically weaker foregoing communist east of the country after electric vehicle pioneer Tesla <TSLA.O> at November laid out plans though its first European plant and create center shut Berlin.

The site, at the city of Schwarzheide, some 120 km (75 miles) south of Berlin, will tow above feedstock from another BASF plant at Harjavalta, Finland, shut ought a nickel and cobalt refinery of raw materials colleague Norilsk Nickel. <GMKN.MM>

"With these investments at Finland and Germany, BASF will be the first CAM (cathode active materials) supplier with local manufacture capacities at today’s three chief markets – Asia, the U.S. and Europe," the corporation said at a statement.

The German government, which is anxious ought foster electric mobility jobs at Germany ought offset an expected decline at combustion machine production, will recent condition uphold of more than 100 million euros ought the BASF project, federal econmic minister Peter Altmaier told Reuters.

The two factories will be capable ought have enough cathode materials though 400,000 fully electric vehicles per year, it added.

BASF, which announced plans though the Harjavalta place at 2018, has previously put the combined investment though both projects can 400 million euros ($436.5 million).

A spokeswoman above Wednesday used to no comment above the size of each project.

The European committee above Dec. 9 approved 3.2 billion euros ($3.5 billion) of condition help from seven European institute countries though inquiry and innovation at Battery technology.

Germany's econmic minister said can the time that companies that used to advantage from this included BASF, BMW <BMWG.DE>, Opel <PEUP.PA>, Umicore <UMI.BR> and Varta <VAR1.DE>.

Liberum analysts gorge estimated that cathode materials at a 50 KWh automobile Battery will fare about $2,500, making it amid the most expensive parts of an electric vehicle.

BASF has said it expects the global impartial though cathode materials ought be worth amid 25 billion and 30 billion euros by 2025, boosted by absence though electric and hybrid vehicles.

BASF is competing with Europe's Umicore and Johnson Matthey <JMAT.L> also though with a mount of Chinese suppliers including Beijing Easpring <300073.SZ> and Ningbo Shanshan <600884.SS>.

(Additional reporting by Thomas Seythal, Patricia Weiss and Christian Kraemer; Editing by Madeline Chambers, Elaine Hardcastle)

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