BASF and Eramet cancel plans to build nickel-cobalt refinery in Indonesia

BASF has announced that it will no longer pursue plans for potential investments in the Weda Bay nickel-cobalt refining complex in Indonesia. In 2020, BASF signed an agreement with Eramet, a global mining and metallurgical group, to jointly evaluate the potential of such projects.

"After a comprehensive evaluation, we have decided not to proceed with the Weda Bay nickel-cobalt refining project," explained Anup Kothari, member of the BASF Executive Board. "The global nickel market has changed significantly since the project was launched. In particular, supply options have changed and with them BASF's battery-grade nickel supply. As a result, BASF no longer believes it is necessary to make such a large-scale investment to ensure a stable supply of metals for its battery materials business." BASF said it would stop all ongoing evaluation and negotiation activities for the Weda Bay project.

Daniel Schönfelder, President of BASF’s Catalysts division, added: “A secure, responsible and sustainable supply of key raw materials for the production of precursor cathode active materials, which may also come from Indonesia, remains crucial for the future development of our battery materials business.”

BASF’s battery materials business has a dedicated procurement team focused on metal and precursor management and trading, and has established a strong partner network to ensure a stable supply of key raw materials required for its growing global cathode active materials business.

Eramet said it will continue to evaluate potential investments in the nickel electric vehicle battery value chain in Indonesia.