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MMC Norilsk Nickel / Miscellaneous - High Priority
MMC Norilsk Nickel: BASF and Norilsk Nickel enter exclusive negotiations to
cooperate on raw material supply for battery materials production in Europe
27-Jun-2017 / 18:32 CET/CEST
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*Joint News Release*
*BASF and Norilsk Nickel enter exclusive negotiations to cooperate on raw
material supply for battery materials production in Europe*
*Cooperation to set foundation to supply battery cell producers for electric
vehicles in Europe with regionally produced cathode materials*
Ludwigshafen, Germany, and Moscow, Russia, June 27, 2017 - BASF and PJSC MMC
Norilsk Nickel (Nornickel) announced today that they have signed a
Memorandum of Understanding and entered exclusive negotiations to cooperate
on the supply of raw materials for future battery materials production for
lithium-ion batteries in Europe. BASF intends to invest up to EUR400 million
in a first step to build industry-leading production plants for cathode
materials in Europe. Through the prospective agreement, BASF would receive
the raw materials from the Nornickel metal refinery in Harjavalta, Finland.
Nornickel would also provide a secure supply of nickel and cobalt feedstock
from its Russian mines at market prices. Along with its leading raw
materials position, Nornickel also brings significant metals refining and
trading experience to the cooperation.
BASF is an established cathode materials provider in the Asian and U.S.
markets through BASF TODA Battery Materials LLC in Japan and BASF's
production facility in Elyria, Ohio. A cooperation with Nornickel will
provide the foundation to further expand BASF's access to the developing
cathode materials market in Europe and participate in growth opportunities
in this region.
The strategic cooperation will leverage both companies' market positions and
expertise to provide an optimized and secure supply chain for electric
vehicle battery cell producers in Europe.
"The envisioned cooperation with Nornickel and the construction of new BASF
battery materials production plants in Europe, will result in a robust
supply chain and enable BASF to expand its production of battery materials
on a global scale," said Kenneth Lane, President of BASF's Catalysts
division. "It also fits well with both companies' growth strategies of
expanding into sustainable technologies."
"For Nornickel this project is an opportunity to increase our exposure to
the high-potential and fast-growing rechargeable battery materials market.
We are interested in supporting this target market with our nickel and
cobalt products. The electric vehicle industry is set to contribute to a
sustainable development. BASF is a long-standing and trusted partner of
Nornickel and a leader in chemistry-based solutions for the automotive
industry. An expanded cooperation with BASF will enable us to strengthen our
position as a leading nickel producer globally and offer customers the best
product in the most suitable form," said Sergey Batekhin, Head of Sales,
Commerce and Logistics at Nornickel.
Nornickel's site in Harjavalta is uniquely suited to the vertically
integrated production of battery precursor cathode materials for the
European market. Several battery cell producers have announced or have
already started the construction of manufacturing plants for electric
vehicle powertrain system batteries in Europe and the local production of
precursor materials is an important step in fostering the development of
this industry in Europe. This development of a regional supply chain for
battery materials in Europe will reduce supply chain risks for battery cell
producers and automakers.
*About BASF's Catalysts Division*
BASF's Catalysts division is the world's leading supplier of environmental
and process catalysts. The group offers exceptional expertise in the
development of technologies that protect the air we breathe, produce the
fuels that power our world and ensure efficient production of a wide variety
of chemicals, plastics and other products, including advanced battery
materials. By leveraging our industry-leading R&D platforms, passion for
innovation and deep knowledge of precious and base metals, BASF's Catalysts
division develops unique, proprietary solutions that drive customer success.
Further information on BASF's Catalysts division is available on the
Internet at www.catalysts.basf.com [1].
*About BASF *
At BASF, we create chemistry for a sustainable future. We combine economic
success with environmental protection and social responsibility. The
approximately 114,000 employees in the BASF Group work on contributing to
the success of our customers in nearly all sectors and almost every country
in the world. Our portfolio is organized into five segments: Chemicals,
Performance Products, Functional Materials & Solutions, Agricultural
Solutions and Oil & Gas. BASF generated sales of about EUR58 billion in
2016. BASF shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA) and Zurich (BAS). Further information at www.basf.com [2].
*About Nornickel *
PJSC MMC Norilsk Nickel is a diversified mining and metallurgical company,
the world's largest producer of refined nickel and palladium and a leading
producer of platinum, cobalt, copper and rhodium. The company also produces
gold, silver, iridium, selenium, ruthenium and tellurium. The production
units of Nornickel include Polar Division, located at the Norilsk Industrial
District on Taimyr Peninsula, and the Kola Mining and Metallurgical Company
located on Kola Peninsula in Russia as well as Harjavalta nickel refinery in
Finland. Nornickel shares are listed on the Moscow and on the
Saint-Petersburg Stock Exchanges. Nornickel ADRs trade over the counter in
the U.S. and on the London and Berlin Stock Exchanges. Further information
at www.nornik.ru/en [3].
*Media contacts:
*PJSC MMC Norilsk Nickel
BASF Corporation
Media Relations*
Trade Media* Phone: +7-495-785-5800
E-mail: pr@nornik.ru
Cesar F. Garcia
BASF Catalysts division
Phone: +1-732-205-7650 *Investor Relations*
E-mail: cesar.f.garcia@basf.com Phone: +7-495-786-8320
E-mail: ir@nornik.ru
*BASF SE
Business Media *
Christine Haupt
Phone: +49 621 60-41040
Email: christine.haupt@basf.com
*Investor Relations *
Phone: +49-621-60-48230
E-mail: ir@basf.com
The EquityStory.RS, LLC Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg
Language: English
Company: MMC Norilsk Nickel
1 st Krasnogvardeysky av., 15
123100 Moscow
Russia
Internet: www.nornik.ru
ISIN: US55315J1025
WKN: A140M9
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart; Open Market in Frankfurt; London, Nasdaq
Category Code: MSCH
TIDM: MNOD
Sequence No.: 4346
End of Announcement EquityStory.RS, LLC News Service
586887 27-Jun-2017
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(END) Dow Jones Newswires
June 27, 2017 12:32 ET (16:32 GMT)
