BASF has selected Harjavalta, Finland, as the first location for battery materials production serving the European automotive market. Start-up is planned for late 2020, enabling the supply of approximately 300,000 full electric vehicles per year with BASF battery materials. The new production plant will be constructed adjacent to Nornickel's metals refinery which will cover the plant's demand for nickel and cobalt feedstocks through the long-term supply arrangement.
The deal between Nornickel and BASF is aimed at meeting growing demand for electric vehicle batteries and will establish a locally sourced and secure supply of raw materials for battery production in Europe.
The transaction was led by Herbert Smith Freehills energy partner Danila Logofet, supported by senior associates Mark Veitch and Oxana Koerner, with assistance of associate Yulia Turkina, on the commercial aspects, of counsel Justin Vaughan, senior associate Stefan Kecman and associate Lauren Long on corporate aspects, as well as partner Mark Jephcott and senior associate Adelaide Luke on competition law.
Danila Logofet commented: "the battery metals market is developing rapidly’and we are excited to assist our client in this strategic sector".