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BASF approved for battery materials JV with Hunan Shanshan Energy

September 06/2021

MOSCOW (MRC) -- BASF has been granted regulatory approval to form a joint venture (JV) with battery materials supplier Hunan Shanshan Energy to cater for the electric vehicle (EV) market in China, said the company. 

German chemicals giant BASF and major Chinese producer of lithium battery materials Ningbo Shanshan on 31 August established joint venture BASF Shanshan Battery Materials to focus on the fast-growing electric vehicle industry.

Ningbo Shanshan in May unveiled an agreement with BASF to transfer a 19.6438pc stake of its subsidiary Shanshan Energy to BASF, and also to purchase 31.3562pc of Shanshan Energy from other shareholders. BASF will hold 51pc of Shanshan Energy, while Ningbo Shanshan will reduce its share to 49pc from 68.6438pc after the deal. The deal was completed yesterday, with Shanshan Energy renamed BASF Shanshan Battery Materials.

Shanshan Energy operated Ningbo Shanshan's battery cathode material business. Established in 2003, Shanshan Energy focuses on production of lithium-ion cathode materials including lithium nickel cobalt manganese oxide (NCM), lithium cobalt oxide (LCO) and lithium manganate. Shanshan Energy shipped 16,722t of LCO, NCM and lithium manganate in January-June, up by 85pc on the year.

As per MRC, BASF reported a better-than-expected second-quarter net profit as it managed to increase volumes and prices thanks to strong demand. Low commodity prices during the coronavirus pandemic weighed on BASFs earnings last year, but the German group recorded a rapid recovery so far in 2021 as the global economy picked up faster than expected.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

BASF SE (headquartered in Ludwigshafen) - the world's largest manufacturer of chemical products for the industry, including the extraction and processing of oil and gas; has more than 150 production sites in the world, including a number of production lines in the Russian Federation.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, PP, PE, propylene, ethylene, neftegaz, petrochemistry, BASF.
Category:General News
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