BASF, private-equity firm Arsenal Capital partners and LiPF6-producer Foosung announced BASF’s acquisition of Novolyte Technologies. Novolyte is a manufacturer of electrolyte formulations for lithium-ion batteries, as well as specialty chemicals for several key market segments. With 167 employees, Novolyte operates sites in the United States and China. BASF purchased Novolyte from Arsenal; the companies have agreed not to disclose financial details of the transaction.
The acquisition comprises Novolyte’s Energy Storage activities focused on developing, producing and marketing performance electrolyte formulations for lithium-ion batteries.
BASF is also buying Novolyte’s performance materials business in which the company is among the leading manufacturers of specialty chemicals in North America. The portfolio includes aryl phosphines, high-performance solvents and custom-made specialties. The acquisition includes 10 patent families in the fields of electrolyte formulation and performance chemicals held by Novolyte.
Within the framework of the acquisition, BASF will continue a joint venture of Novolyte with Korean partner Foosung Co., Ltd., a global producer of the high-purity specialty salt Lithium Hexafluorophosphate (LiPF6), a key material for manufacturing lithium-ion battery electrolytes.
Novolyte operates production sites in Baton Rouge, Louisiana, and in Suzhou, China. An additional site for LiPF6 production is currently under construction in Nantong, China, to be operated by the Foosung/BASF joint venture. Both Chinese sites are located in the greater Shanghai area.
Our acquisition of Novolyte Technologies further positions BASF to achieve its long-term objective of becoming the leading provider of functional materials and components to serve cell and battery manufacturers worldwide. This is the latest in a series of strategic steps we have taken to strengthen our technology position while building a broad portfolio of battery materials technologies that will help us drive the future of electromobility.—Ralf Meixner, Senior Vice President of BASF’s Global Battery Materials Business
Together with partners in industry and science BASF is developing materials and technologies for current and next-generation lithium-ion batteries as well as for future battery systems. The aim is to reduce the time to market for new solutions to energy storage. A major step on this road is the construction of a manufacturing plant for battery materials in Elyria, Ohio. Along with battery materials, plastics and composites for lightweight automotive design and solutions for improved heat management, such as IR-reflective pigments for coatings and vehicle interior uses, have major roles to play.