BASF and Shanshan, a leading supplier of lithium-ion battery materials supplying the electric mobility market, have agreed to form a joint venture majority-owned by BASF (BASF: 51%; Shanshan: 49%) to produce active materials of cathodes and precursors in China. The closing of the transaction is scheduled for the end of this summer after approval by the relevant authorities.
BASF will increase its contribution as the world’s leading supplier of active cathode materials to the automotive industry with strong technology and development capabilities, presence of global operations and strategic partnerships for the supply of raw materials.
By forming the joint venture BASF increases its annual capacity to 160 kilotonnes of cathodes by 2022 with further expansions underway.
“Our joint venture will complement BASF’s global battery materials footprint while increasing our customer proximity. By combining BASF’s and Shanshan’s expertise, we will accelerate the electrification transformation of the transportation industry,” said Markus Kamieth, member of the executive board of BASF SE.
Also, as one of the leaders in the Chinese cathode market, Hunan Shanshan Energy has supported the lithium ion battery industry for more than 18 years. Thanks to its experience, it has a complete product portfolio that covers the main categories of active cathode materials used in lithium-ion batteries. It has formed a business value chain that includes raw materials, PCAM, CAM, and battery recycling.
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“This partnership will complement our R&D and product portfolios. The integration of BASF’s and Shanshan’s supply chain and customer resources will further enhance the competitiveness of the intended joint venture and enable it to be one of the world’s leading suppliers of active materials of cathodes,” added Zhihua Li, Chairman of Shanshan.
BASF has developed its global presence by focusing on customer proximity, improving the competitiveness of its product portfolio and ensuring a sustainable supply of raw materials.
Notably, in Europe, BASF is investing in cathode active material capabilities in Germany.
Written by | Gabriel Sayago
