^{Joint News Release}

BASF and Nornickel join forces to supply the battery materials market

• BASF announces first location for battery materials production in Europe
• BASF and Nornickel establish a strategic cooperation to meet the growing needs for battery materials in electric vehicles

Ludwigshafen, Germany, and Moscow, Russia, October 22, 2018 – BASF has selected Harjavalta, Finland, as the first location for battery materials production serving the European automotive market. The plant will be constructed adjacent to the nickel and cobalt refinery owned by Norilsk Nickel (Nornickel).

This investment is part of BASF’s €400 million multi-step investment plan announced last year and builds upon initial battery materials production started in Harjavalta in 2018.  Start-up is planned for late 2020, enabling the supply of approximately 300,000 full electric vehicles per year with BASF battery materials. The new plant in Harjavalta will utilize locally generated renewable energy sources, including hydro, wind and biomass.

Additionally, BASF and Nornickel have signed a long-term, market-based supply agreement for nickel and cobalt feedstocks from Nornickel’s metal refinery. The agreement will establish a locally sourced and secure supply of raw materials for battery production in Europe.

The investment in the new plant in Finland reinforces BASF’s support of the EU Commission’s agenda towards a European battery production value chain. BASF is also evaluating additional locations in Europe for the construction of new production plants for battery materials.

“With the investment in Harjavalta, BASF will be present in all major regions with local production and increased customer proximity further supporting the rapidly growing electric vehicle market,” said Kenneth Lane, President, BASF’s Catalysts division. “Combined with our Nornickel cooperation, we are creating a strong platform that connects the efforts between industry leaders in raw material supply and battery materials technology and production.”

“The co-location of BASF’s new plant and Nornickel’s metal refinery in Harjavalta will enable unparalleled access to a local nickel and cobalt supply,” said Jeffrey Lou, Senior Vice President, Battery Materials at BASF. “Our high-nickel cathode materials are key to deliver enhanced energy density and vehicle range to our customers. With this world-scale production facility, BASF will be able to serve the European e-mobility growth strategies of key OEMs and cell suppliers with reliable supply and close collaboration.”

Sergey Batekhin, Senior Vice President, Sales, Procurement and Innovation at Nornickel, confirmed, “We are pleased to extend our alliance with BASF, one of our long-term strategic partners. The agreement is an important element of Nornickel’s broader strategy to expand its presence in the global battery materials market and establish long-term cooperation with leading producers of cathode active materials.”

Batekhin said, “We believe that electric vehicles have significant potential to transform the global nickel industry, and Nornickel – as the world’s leading supplier of refined nickel products – is uniquely positioned to support this transformation. We feel especially proud that our company can play an important role in supporting the development of the green economy in Europe and globally. Nornickel reiterates its strong commitment to the sustainable long-term development of its resource base and being a responsible participant in the global materials supply chain.” 

To learn more about BASF Battery Materials and BASF’s commitment to e-mobility, visit our website:

https://catalysts.basf.com/products-and-industries/battery-materials

You can find TV footage and additional photo material of BASF’s battery material research and production sites in our TV-service and photo pool (please choose “battery” as search term).

About BASF’s Catalysts Division

BASF’s Catalysts division is the world’s leading supplier of environmental and process catalysts. The group offers exceptional expertise in the development of technologies that protect the air we breathe, produce the fuels that power our world, and ensure efficient production of a wide variety of chemicals, plastics and other products, including advanced battery materials. By leveraging our industry-leading R&D platforms, passion for innovation and deep knowledge of precious and base metals, BASF’s Catalysts division develops unique, proprietary solutions that drive customer success. Further information on BASF’s Catalysts division is available on the Internet at www.catalysts.basf.com.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. The more than 115,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas. BASF generated sales of €64.5 billion in 2017. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (BAS). Further information at www.basf.com.

About Nornickel

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