BASF plans to strengthen its presence in the global lithium-ion battery and consumer electronics market by forming a joint venture with Shanshan, a leading Li-ion battery supplying company in China. The joint venture project aims at producing Cathode active Materials (CAM) and precursors (PCAM) in China. The transaction will result in the shares of 51% shares for BASF and 49% stake for Shanshan.
BASF possesses strong developmental and technological facilities and it further strategically aims at increasing its production capacity to 160 kilotons by 2022. It also aims to strengthen its position in Asia battery materials market in partnership with Hunan Shanshan Energy.
Shanshan is an experienced player in the battery materials market and a leading supplier of CAM and PCAM materials used in lithium-ion batteries. The company also operates across the value chain of offering 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.
The joint venture facilitates BASF to accelerate the electrification transformation in the industry. On the other hand, it strengthens Shanshan to complement its product portfolio and further strengthen its competitiveness in the Chinese market. BASF holds a strong footprint as a high-energy-density CAM manufacturer in Asia and North America and this project will support the company to emerge as a leading player on the global front.