BASF Halts Chile Lithium Investment Amid Market Downturn
Germany-based chemical giant BASF has made the decision to cancel its investment plans in Chile’s lithium sector, as reported by Bloomberg News. The move comes as the global slowdown in the adoption of electric vehicles (EVs) has resulted in a decrease in demand for battery metals, leading to a drop in lithium prices.
BASF had been in talks with Wealth Minerals, a Canadian company with lithium exploration projects in Chile, regarding potential funding and offtake agreements. The company was also considering the construction of a facility in Chile to process lithium into cathodes for EV batteries, as part of its strategy to diversify revenue streams beyond traditional chemical and plastic products.
This decision by BASF is a setback for Wealth Minerals, which is aiming to develop new lithium extraction areas in Chile. The cancellation of this potential investment follows a recent decision by BASF and Eramet to withdraw from a joint investment in a nickel-cobalt refining complex in Indonesia, citing slower sales growth for EVs in the region.
Looking ahead, BASF is focused on strengthening its raw material supply chain in Europe, with plans for a new battery recycling plant in Germany set to begin operations later this year. Despite the challenges in the lithium market, BASF remains committed to the future development of its battery materials business and ensuring a secure and sustainable supply of critical raw materials.
