A possible association had included potential funding and offtake if Wealth obtained manufacturing contracts in Chile. BASF additionally was exploring the potential of constructing a plant in Chile to show lithium into the cathode that goes into electric-vehicle batteries.
“No collaboration between BASF and Wealth Supplies materialized in the long run,” BASF wrote. The corporate didn’t give a purpose for ending the talks or point out the proposed cathode plant.
The withdrawal follows BASF’s announcement final week that it scrapped plans for a $2.6 billion nickel-cobalt refinery in Indonesia. Slowing EV gross sales progress has pushed down costs of key inputs, with lithium at three-year lows after surging to a report in late 2022.
BASF now plans to bolster raw-materials provide for European operations through a brand new battery recycling plant in Germany, because of begin operations later this 12 months.
Whereas the German firm’s involvement in Chile was at a really early stage, it’s withdrawal is a blow to European authorities’ push for corporations to safe offers with key battery metals suppliers.
It’s additionally a setback for Wealth because it grapples with a technique being applied in Chile to open new areas to lithium extraction. One of many firm’s initiatives is in an space deemed of strategic significance, that means it must tackle a state-owned firm as a majority companion.
Wealth chief govt officer Henk van Alphen declined to touch upon BASF’s exit. He stated implementation of the federal government’s lithium technique has been sluggish although progress is being made. Authorities subsequent week are scheduled to announce particulars of corporations desirous about new contracts in nonstrategic salt flats.
(By Wilfried Eckl-Dorna and James Attwood)