BASF Abandons Lithium Investment Talks in Chile Amid EV Market Slowdown

Published: Jul 5, 2024 18:26

Source: SMM

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On 2 July, according to Bloomberg, German chemicals giant BASF SE has scrapped its plans to invest in lithium mining assets in Chile due to a global slowdown in electric vehicle adoption, which has caused a drop in battery metal prices. The company withdrew from preliminary discussions with Vancouver-based Wealth Minerals Ltd., which has lithium exploration projects in Chile.

The potential partnership involved funding and offtake agreements. BASF was also considering building a facility in Chile to convert lithium into cathode materials.

This decision comes shortly after BASF and Eramet cancelled a US$2.6 billion nickel-cobalt refinery project in Indonesia, citing similar market challenges. BASF has plans to enhance its raw material supply chain in Europe by opening a battery recycling plant in Germany later this year.

For Wealth Minerals, navigating the new nationalisation rules on lithium resources in Chile will then require partnerships with state-owned entities, further complicating the development plans.

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