BASF puts battery recycling project in Spain on ice
The demand for electric cars has decreased in the past few months. This also affects the plans of chemicals company BASF. The company is launching a large-scale battery recycling project. The market environment is currently too uncertain.
Despite decreasing demand for electric cars, BASF's large-scale metal refinery project for battery recycling at the Spanish site Tarragona will be put on hold for now. "We are ready to start as soon as the build-up of cell capacities and the spread of electric cars in Europe pick up again," said CEO Markus Kamieth in a phone conference.
"We are optimistic that the trend towards electric vehicles will continue and that battery materials will continue to be a significant growth opportunity for the chemical industry," said Kamieth. "At the same time, we are taking measures to reduce risk in the currently uncertain market environment."
The future of BASF's facility for battery precursor production in Harjavalta, Finland, is uncertain. Although the operating permit has been granted, a decision on starting production will not be made until the objection period has expired, said Kamieth in response to a question.
The plant in Schwarzheide in Lausitz, where BASF plans to produce cathode materials for electric vehicle batteries, which are the heart of the batteries, is currently in operation. The qualification processes for the materials for customers are very time-consuming. The later production volumes are secured through contracts. The CEO did not want to comment on the future utilization of the two production lines.
In the hope of strong growing demand for electric cars, car manufacturers have announced massive investments in battery factories. However, after the sudden withdrawal of the state purchase premium, demand for electric cars in Germany has decreased. In addition, smaller, affordable electric models are in short supply. According to experts, price-conscious customers who are willing to contribute to climate protection have been saturated in the past few years.
Despite the current decrease in demand for electric cars, BASF remains optimistic about the future of battery materials in the chemical industry. To mitigate risks in the uncertain market, the company is taking measures to delay its large-scale battery recycling project in Spain, specifically the metal refinery project at Tarragona.
