The establishment of BASF Shanshan Battery material Co., Ltd. plans to achieve an annual production capacity of 90,000 tons by 2022.

On August 31, 2021, after the examination and approval of the relevant departments, BASF and Shanshan Co., Ltd. jointly established a joint venture "BASF Shanshan Battery material Co., Ltd." (BASF Shanshan). The new company will be majority owned by BASF (51% by BASF and 49% by Shanshan).

In China, the world's largest market for battery materials, the new company will focus on the fast-growing field of electric vehicles

Combine the technical expertise and market resources of both sides to achieve the competitive advantage of excellent customer value, rapid innovation and cost.

BASF further promotes the implementation of the battery materials business strategy to build a strong global supply chain for battery manufacturers and automakers in the world's major markets.

The newly established joint venture company has four bases in Hunan and Ningxia, has more than 1600 employees, and covers raw materials, cathode material precursor (PCAM), cathode active material (CAM) and battery recycling, and has occupied a dominant market position in the battery material industry.

BASF injected strong technical and R & D capabilities, global operational layout, and raw material supply system with strategic partners into the cooperation between the two sides. Shanshan injects extensive industry experience, comprehensive product portfolio and leading mass production capacity into the joint venture, which will focus on the fast-growing (EV) market of electric vehicles and continue to serve the global consumer electronics and energy storage markets.

BASF and Shanshan will jointly promote the continued growth of the joint venture in China, with an annual production capacity of 90,000 tons planned by 2022.

This investment in the Chinese market is our ideal layout in the world's largest battery market. Our market advantage in China will further accelerate our growth in the global battery materials market.

We look forward to working with BASF to enhance the strength of the joint venture, further enhance the position of the joint venture in the electric vehicle market, and provide first-class products for Chinese and global customers.

BASF continues to lay out globally, focus on being close to customers, strengthen its product portfolio, and ensure a sustainable supply of raw materials. With the successful delivery of the deal, BASF achieved an important step in implementing the strategic roadmap: establishing a global battery material value chain to achieve a global capacity of 160000 tons by 2022. BASF's global production and R & D layout will ensure that BASF can provide customized positive active materials for battery manufacturers and automakers in all major markets and achieve efficiency, proximity and synergy.

About BASF Catalyst Business Department

BASF Catalysts is a global leader in environmental technology and process catalysts, as well as battery materials, providing superb expertise in technology development to protect the air we breathe and to produce the fuels we need to power. And ensure the efficient production of chemicals, plastics and other products, including advanced battery materials. With our industry-leading R & D platform, passion for innovation and deep understanding of a variety of precious and base metals, BASF Catalysts develops a variety of unique and patented solutions to help customers succeed. For more information about BASF Catalyst Business, please visit www.catalysts.basf.com

About BASF Shanshan Battery material Co., Ltd.

BASF Sequoia Battery Materials Co., Ltd. (BASF Shanshan) is a joint venture between BASF and Shanshan in 2021 (51% of BASF and 49% of Cunninghamia lanceolata). The company was first founded by Shanshan Co., Ltd. in 2003 and is now a leading company in China's cathode material industry. The main products lithium cobalt and ternary battery materials are in the forefront of the industry. BASF fir has production bases in Changsha, Ningxiang, Hunan and Shizuishan, Ningxia. By 2022, the total annual production capacity will reach 90,000 tons. Relying on continuous technological innovation and independent research and development, BASF Shanshan has established a leading technology research and development center in Changsha, Hunan Province, and has more than 240 experts and researchers focusing on product development, analysis and testing.