https://revolution-green.com/basf-bets-new-recipe-electric-car-batteries-grab-growing-market/
BASF Bets On New Recipe For Electric Car Batteries To Grab Growing Market
November 23, 2018  Agcat 

[image  
https://www.thehindubusinessline.com/migration_catalog/article18374580.ece/alternates/WIDE_960/bl18_ndmds_ISRO+GQB1JQBPI.3.jpg.jpg
FRANKFURT, REUTERS
]

German chemicals giant BASF is betting on a new recipe for electric car
batteries which stretches the time between charges while cutting dependence
on nickel to help shave costs and grab more of a growing market.  It is part
of flurry of activity in the sphere of cathodes materials, a major component
of battery cells for an anticipated switch to electric vehicles (EV) due to
clean air regulation. At the moment BASF and others, including Belgium’s
Umicore , a market leader, are boosting the nickel content to allow more
energy storage and replace expensive cobalt, which is largely sourced from
mines in Congo, where exploitation is rife.  But BASF is also working on
plans to cut the nickel content by more than half while increasing the
proportion of cheap and abundant manganese, the company said in response to
questions from Reuters

“In addition, their cobalt-content will be below 5 per cent with a target to
produce these materials cobalt-free,” it said.  Nickel currently makes up
about 60 per cent of cathode materials and companies including Umicore and
BASF are pushing that up to 80 per cent in product launches next year.  A
slide from a BASF presentation from last year, seen by Reuters, envisaged a
cathode materials product made up of just 20 per cent nickel and 70 percent
manganese in about 2021. It said that would cut costs to just over $40 per
kWh of energy stored from well over $50 currently.

BASF was less specific in its latest statement to Reuters. “The market will
be ready to adopt such materials in some years from now,” it said.  The
company, which elbowed its way into the cathode market with a string of
takeovers and investments from 2012 to 2015, competes with several big Asian
manufacturers as well as Britain’s Johnson Matthey and Umicore.  All three
European players also produce catalytic converters for diesel vehicles,
which are losing favour among regulators due to their emissions, adding
urgency to their EV battery push.

Umicore declined to comment specifically on its nickel strategy; earlier
this year, it said lifting nickel content was key to boosting a battery’s
energy density – or how much energy a battery can store – and some cobalt
was needed for stability.  It has a leading position in high-nickel NMC-811,
made up of 80 per cent nickel, 10 per cent manganese and 10 per cent cobalt,
and has said it is working to improve the product’s durability over charging
cycles and high voltage stability as well as focusing on recycling.  Johnson
Matthey is developing a high-nickel cathode material, dubbed eLNO, which it
says is safer, more cost efficient and stores more energy than current
material.  Johnson Matthey’s Chief Technology Officer Alan Nelson told
Reuters that while the group was monitoring various technologies, it was not
developing low nickel, manganese-rich cathoder materials because of “several
key challenges to commercialisation” including fading voltage over charge
cycles.

EUROPEAN PUSH

The cathode materials business is a relatively small part of BASF, but it is
one of Chief Executive Martin Brudermueller’s flagship innovation projects
aimed at lifting BASF’s share price after a 20 per cent rout since he took
over in May.

Nickel, mostly used for stainless steel, costs about one fifth the price of
cobalt. But BASF estimates that demand for high-grade nickel for electric
vehicles will surge to 318,000 tonnes in 2025 from 25,000 tonnes in 2016.
That would absorb 58 per cent of global supply, in 2016 terms, compared with
less than 5 per cent in 2016.  Materials suppliers as well as car makers
such as BMW and VW are wary of shortages and have been pursuing contracts to
secure long-term supplies.

Asian cathode suppliers include Sumitomo Metal Mining and Nichia from Japan
as well China’s Ningbo Shanshan and Easpring.  BASF has committed to
building a cathode factory in Finland and is assessing several European
locations for follow-up investments, including Schwarzheide in eastern
Germany as part of a 400 million euro investment plan.  JJohnson Matthey
plans to spend 200 million pounds ($263 million) on an eLNO plant that could
go on stream from 2021, while Umicore will invest 660 million euros ($744
million) in battery materials in China and Europe.  “Umicore does have a
head start but the real growth will start in five to 10 years so it’s not
too late for the other producers,” said Patrick Jahnke, portfolio manager at
Deka Investments, which owns BASF stock. ($1 = 0.7605 pounds) ($1 = 0.8867
euros)
[© revolution-green.com]


https://www.reuters.com/article/us-battery-chemicals-basf-se-idUSKCN1NS0E7
BASF makes low-nickel wager amid scramble for battery metals
November 23, 2018  FRANKFURT (Reuters) - German chemicals giant BASF is
betting on a new recipe for electric car batteries which stretches the ...


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