BASF to form battery materials JV in China

German chemicals group BASF SE (ETR:BAS) unveiled on Thursday an agreement to form a joint venture (JV) with Chinese lithium battery materials supplier Ningbo Shanshan Co Ltd (SHA:600884), which will produce cathode active materials (CAM) and precursors (PCAM) in China.

The new company will be 51% owned by BASF, with the remainder to be held by Shanshan. Financial details were not revealed.

Through the transaction, BASF will enter China's CAM market and strengthen its position in Asia. The partnership will allow it to establish an integrated global supply chain, boosting its capacity to 160 kilotons by 2022, the German company said in its statement.

Shanshan provides lithium-ion battery materials to the e-mobility and the consumer electronics (CE) market. Its unit Hunan Shanshan Energy operates four production facilities with an annual capacity of 90 kilotons by 2022.

Completion of the deal is seen in the summer, subject to regulatory approval.

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