Russian mining company Norilsk Nickel (Nornickel) has started exclusive negotiations with German chemicals firm BASF to cooperate in the supply of raw materials for future lithium-ion battery production in Europe.
Under the terms of a memorandum of understanding signed by the firms, which was announced on 27 June, BASF intends to invest up to €400 million ($456.6 million) “in a first step” to supply European battery cell producers for electric vehicles with regionally-manufactured cathode materials.
The companies said their proposed relationship aims to “provide an optimised and secure supply chain for electric vehicle battery cell producers in Europe”.
Under the terms of the firms’ prospective agreement, BASF would receive the raw materials from the Nornickel metal refinery in Harjavalta, Finland. Nornickel would also provide a secure supply of nickel and cobalt feedstock from its Russian mines at market prices.
“Along with its leading raw materials position, Nornickel also brings significant metals refining and trading experience to the cooperation,” the companies said in a joint statement.
BASF is an established cathode materials provider in the Asian and US markets through BASF TODA Battery Materials in Japan and BASF’s production facility in Elyria, Ohio. BASF said its cooperation with Nornickel is expected to give it a basis on which to build future access to the European market.
Kenneth Lane, president of BASF’s catalysts division, said: “The envisioned cooperation with Nornickel and the construction of new BASF battery materials production plants in Europe, will result in a robust supply chain and enable BASF to expand its production of battery materials on a global scale.”
Nornickel’s head of sales, commerce and logistics, Sergey Batekhin, said: “For Nornickel this project is an opportunity to increase our exposure to the high-potential and fast-growing rechargeable battery materials market. We are interested in supporting this target market with our nickel and cobalt products. The electric vehicle industry is set to contribute to sustainable development.”
