TAGS: Automotive Electrical & Electronics New Energy Solutions
BASF and Shanshan have agreed to form a BASF majority-owned joint venture (BASF: 51%; Shanshan: 49%) to produce cathode active materials (CAM) and precursors (PCAM) in China. Closing of the transaction is targeted for later this summer following the approval of the relevant authorities.
BASF Contributes Technology and Raw Materials
BASF will contribute its strength as a global CAM supplier to the automotive industry with strong technology and development capabilities, global operations footprint, as well as strategic partnerships for raw materials supply. By forming the intended joint venture in China, BASF further strengthens its position in Asia to build up an integrated, unique global supply chain for customers in China and worldwide, increasing its annual capacity to 160 kilotons by 2022 with further expansions underway.
“I am pleased that BASF is joining forces with Shanshan, a cathode materials leader in China. Our joint venture will complement BASF’s global battery materials footprint while increasing our customer proximity,” said Dr. Markus Kamieth, member of the board of executive directors of BASF SE. “
By combining BASF’s and Shanshan’s expertise, we will accelerate the electrification transformation of the transportation industry.”
Comprehensive Product Portfolio
Hunan Shanshan Energy has supported the lithium-ion battery industry for more than 18 years. Through its extensive experience, it has a comprehensive product portfolio that covers the main categories of the CAM and the corresponding PCAM used in lithium-ion batteries. It has formed a business value chain including raw materials, PCAM, CAM and battery recycling. Hunan Shanshan Energy operates four production sites for CAM and PCAM in Hunan and Ningxia, China, with an annual capacity of 90 kilotons by 2022.
Yonggang Zheng, Chairman of Shanshan, added, “
BASF has broad and long-standing collaboration with global automotive OEMs and powerful brand impact. Through the partnership with BASF, Shanshan will further strengthen the competitiveness in the Chinese market and accelerate the integration into the global market by providing high-quality services and products to customers in China and around the world.”
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I am excited about this breakthrough partnership bringing two powerhouses in the battery materials market together. Our combined innovation and technology expertise will provide our customers with incomparable competitiveness on innovation, customer proximity and cost,” said Dr. Peter Schuhmacher, President, Catalysts division at BASF.
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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 CAM,” said Zhihua Li, President of Shanshan.
Source: BASF