Basf, Canada In Early Talks On Ev Battery Production: source
20/05/2021 15:00
By Steve Scherer and Christoph Steitz
OTTAWA, May 20 (Reuters) - Several companies, including
Germany's BASF SE BASFn.DE , are in preliminary talks about
tapping a federal clean tech fund to set up production for
electric vehicle batteries in Canada, a government official with
knowledge of the discussions said.
The talks are centered on understanding whether the goals of
BASF and others fit with the aim of the C$8 billion ($6.6
billion) "Net Zero Accelerator" (NZA) fund, the source said.
Canada has set a goal to reach net zero emissions by 2050.
BASF is a key supplier of cathode active materials (CAM)
needed for the production of lithium-ion batteries in electric
vehicles (EV), and is the world's largest chemicals and plastics
producer by sales.
"Canada is an interesting destination for potential
production given its access to rising battery cell manufacturers
in North America and its access to raw materials that are needed
for the production of cathode materials," BASF said in a
statement to Reuters.
"BASF currently examines several options in various regions
to further expand its production network in this fast growing
market for battery materials and to continue to support its
customers," it added, without confirming the talks with the
Canadian government.
John Power, spokesman for Canada's Industry Minister
Francois-Philippe Champagne, said he could not comment on the
status of any discussions. The talks are preliminary and are no
guarantee of a deal, the source said.
BASF, in partnership with Japan's Toda Kogyo Corp 4100.T ,
already produces CAM at two locations in North America - Ohio
and Michigan - including nickel cobalt aluminum oxide and nickel
cobalt manganese oxide.
BASF has been seeking access to battery-grade cobalt and
nickel, for instance through partnerships with Russia's Norilsk
Nickel GMKN.MM and France's Eramet ERMT.PA .
On Thursday, BASF also unveiled a 51%-49% joint venture with
Shanshan 600884.SS to produce CAM in China, the world's
largest car market. urn:newsml:reuters.com:*:nL5N2N73XD
CANADA SEEKING TO WOO BATTERY MAKERS
According to market research firm ReportLinker, the global
CAM market is expected to grow to $23.3 billion by the end of
2025 from $16.8 billion in 2019, boosted by an expected global
boom in electric vehicle sales.
Rich in key materials for EV battery production - including
lithium, graphite, cobalt and nickel - Canada is trying to woo
battery makers to safeguard the future of its manufacturing
heartland in Ontario as the world seeks to cut emissions.
Ontario is geographically close to U.S. automakers in
Michigan and Ohio, and General Motors Co GM.N , Ford Motor Co
F.N and Stellantis NV STLA.MI have all announced plans to
make electric vehicles at factories in Ontario.
"We are ensuring we have the policies necessary to attract
the electric vehicle and battery supply chains to Canada,"
Industry Minister Champagne said in a statement.
The "Net Zero Accelerator" "will support job creation and
our long-term prosperity, and position Canada as a global
leader," he added.
Current EV sector manufacturers in Canada include GreenPower
GPV.V , Lion Electric LEV.TO , New Flyer, and Nova Bus, which
is owned by Sweden's Volvo's VOLVb.ST .
Other European and Asian players are exploring options for
how to enter the Canadian market, including Austrian lithium-ion
battery maker Kreisel Electric, which licenses its technology to
clients for a fee.
"We are in very concrete talks with a very large player in
the bus and trucks industry," said Gernot Friedhuber, who holds
a 15% stake in Kreisel Electric with a fellow investor.
"Should the decision be made in our favor, we would build
production on site and create value in Canada."
Chinese EV maker BYD Co Ltd 002594.SZ 1211.HK , which is
backed by U.S. investor Warren Buffett and already operates a
bus factory in Ontario, said Canada was an "extremely important"
market for the Shenzhen-based group.
"Already, BYD is participating in pilot programs in several
provinces and the company hopes to expand that presence over the
next several years," it said, without providing details.
($1 = 1.2102 Canadian dollars)
(Reporting by Steve Scherer in Ottawa and Christoph Steitz in
Frankfurt; additional reporting by Ludwig Burger and Patricia
Weiss; editing by Jonathan Oatis)
((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))