Chemical company BASF is set to form a joint venture with Hunan Shanshan Energy to produce lithium-ion battery cathode active materials (CAM) and precursors (PCAM) in China.
German firm BASF will have a 51% share of the JV when it closes later this summer following the approval of the relevant authorities.
BASF hopes the intended joint venture will strengthen its position in Asia as it looks to build an integrated, global supply chain for customers in China and worldwide.
The company aims to increase its annual CAM capacity to 160 kilotons by 2022 with further expansion underway.
Chinese firm Hunan’s product portfolio covers the main categories of the CAM and the corresponding PCAM used in lithium-ion batteries.
Hunan’s business value chain includes: raw materials, PCAM, CAM and battery recycling, and operates four production sites for CAM and PCAM in Hunan and Ningxia, China, with an expected annual capacity of 90 kilotons by 2022.