MMC Norilsk Nickel: BASF and Norilsk Nickel enter exclusive negotiations to cooperate on raw material supply for battery materials production in Europe

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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 
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, 
LLC - a company of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*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: [phone] 
                                E-mail: [e-mail] 
Cesar F. Garcia 
BASF Catalysts division 
Phone: [phone]          *Investor Relations* 
E-mail: [e-mail] Phone: [phone] 
                                E-mail: [e-mail] 
*BASF SE 
 
Business Media * 
Christine Haupt 
Phone: [phone] 
Email: [e-mail] 
 
*Investor Relations * 
Phone: [phone] 
E-mail: [e-mail] 
 
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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)