BASF and Shanshan, a leading lithium-ion battery materials supplier serving both the e-mobility and the consumer electronics (CE) market, 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 will contribute its strength as a leading 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, global supply chain for customers in China and worldwide, increasing its annual capacity to 160 kilotons by 2022 with further expansions underway.

As one of the leaders in the Chinese CAM market, 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.

Our joint venture will complement BASF’s global battery materials footprint while increasing our customer proximity. By combining BASF’s and Shanshan’s expertise, we will accelerate the electrification transformation of the transportation industry.

—Dr. Markus Kamieth, Member of the Board of Executive Directors of BASF SE

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.

—Zhihua Li, President of Shanshan

BASF has continued to develop its global footprint focusing on customer proximity, enhancing its product portfolio competitiveness, and securing sustainable raw materials supply. Under the formed joint ventures with TODA, in Japan and the United States, BASF is already well established as a leading high-energy-density CAM manufacturer in Asia and North America.

In Europe, BASF is investing in CAM capacities in Germany and PCAM capacities in Finland. The joint venture with Shanshan, one of the leaders in the Chinese CAM market, will make BASF the first company with capacities in all major markets by 2022.