BASF chose Harjavalta as the first European site to produce battery materials for the European automotive market, but is now forced to announce layoffs.
BASF, which has built a plant in the Finnish town of Harjavalta for the production of battery materials but has not yet received permission from the authorities for its launch, announced layoffs. The company noted in a statement.
In October 2018, Nornickel reported a strategic partnership with BASF for the supply of nickel and cobalt feedstock, which is produced at Nornickel’s refining plant. It was clarified that BASF has selected Harjavalta as the first European site for the production of battery materials for the European automotive market.
“BASF received the first authorization from the relevant authorities after an extensive environmental impact assessment in 2020. Since then, we have traveled an agonizing path. Permits have been granted, there have been complaints about them, but unfortunately, the permits have not become legally binding. We are disappointed because we have received very different messages from the authorities and the court,” said Tomi Oja, the CEO of BASF Battery Materials Finland Oy.
BASF notes that the battery industry is a dynamic market requiring large investments, planning requires speed, certainty and clear interpretation of the law.
Negotiations on layoffs will begin on April 15 and will last six weeks, the company specifies.
The BASF plant was scheduled to start up at the end of 2020, but ran into problems in obtaining environmental authorization from regional authorities.
The plant was expected to fully supply around 300,000 electric vehicles a year with BASF’s battery materials.
Nornickel’s Finnish refinery Norilsk Nickel Harjavalta was also expected to supply BASF with raw materials, while Nornickel would also ensure the supply of nickel and cobalt raw materials from its Russian mining operations at market prices.
