Ningbo Shanshan announced it will invest CNY8bn ($1.24bn) in new battery producing facilities in Southwest China via its subsidiary Shanghai Shanshan Lithium Battery Material Technology. The facilities will increase production for both domestic and export use, especially, to large customers and clients in Europe, according to media reports.
The German chemical company BASF has announced a 51pc majority-owned joint venture (JV) with Shanshan to become BASF Shanshan Battery Materials. The value of the JV was not disclosed.
The new entity will launch operating four plants in China with about 1,600 employees. The present BASF plants include raw materials management, precursor cathode active materials (PCAM), cathode active materials (CAM), and battery recycling. The value of the venture was undisclosed.
BASF and Shanshan jointly have a planned CAM capacity of 90,000mt annually by 2022. BASF has a goal to build up a global battery materials value chain and CAM capacity of 160,000mt by 2022.
The main project targets an investment in Sichuan province to produce 200,000mt of lithium battery anode materials annually. Sichuan was selected for its hydropower access, which will lower production expenditures, along with its proximity to the launching point of the China-Europe rail link.
The project will be developed in two 100,000mt phases in the Pengshan Economic Development Zone. The construction of each site will take approximately 1.5yrs. The sites will resemble the one presently in Inner Mongolia.
Shanshan’s H1 2021 profits leaped by 600pc compared to the same period last year due to the EV battery sector’s recovery and growth. Shanshan purchased a 15.1pc stake in Australia’s Altura Mining, which is making investments in lithium mining.