BASF Adds US Capacity as $35 Billion Battery Binder Market Heats Up

In a strategic move to strengthen its global footprint in battery materials, BASF is expanding production of Licity® anode binders at its Monaca, Pennsylvania and Chattanooga, Tennessee sites. This expansion responds to surging demand from the fast-growing lithium-ion battery market, particularly in the U.S., where EV production is booming.

The expansion aligns with BASF’s global SBR (styrene-butadiene rubber) production network spanning China, Germany, and Finland, and reinforces its technical edge in binders critical for battery performance. Licity® binders, based on waterborne, carboxylated SBR, boost battery capacity by 20%, increase cycle life by 15%, and shorten charging time by 10%, while ensuring performance even at -20°C.

The lithium-ion battery sector is expanding rapidly, with global market value expected to double from $60 billion in 2024 to $120 billion by 2030. In 2024 alone, EV sales exceeded 16 million units, with U.S. sales rising 30%. Anode binders, though accounting for only 1–2% of a battery’s weight, are essential for structural stability and long-term performance.

BASF’s move also supports the U.S. government’s $370 billion Inflation Reduction Act, which encourages local battery production. In 2024, ten new battery plants were announced in the U.S., totaling over $20 billion in investment, aiming for 500 GWh of capacity by 2026. By adding domestic Licity® production, BASF enhances local sourcing for EV manufacturers like Tesla and GM, cutting logistics costs and tightening supply chains.

As the global anode binder market is projected to reach $3.5 billion by 2028, BASF is positioned to lead with a binder that caters to both graphite and high-capacity silicon anodes, meeting the evolving needs of EVs, energy storage systems, and consumer electronics.