By Fabiana Negrin Ochoa
Contemporary Amperex Technology Co., one of the world's largest battery makers, is teaming up with chemicals company BASF SE to develop a sustainable value chain for batteries.
China-based CATL said Thursday that the cooperation will focus on battery recycling and on cathode active materials, which are key to producing electric- vehicle batteries.
The collaboration will also help both companies in their bids to advance global carbon-neutrality goals, CATL said. The Tesla Inc. supplier has previously said it is working to reduce carbon emissions in line with China's national goals of reaching peak emissions before 2030 and carbon neutrality before 2060. Germany-based BASF in March said it aims for net-zero emissions by 2050.
As countries double down on efforts to cut emissions, the EV industry is booming, making it increasingly critical to use responsibly sourced materials used in batteries and be able to recycle them.
The companies said Thursday that combining CATL's battery tech with BASF's materials know-how could help clean up battery production.
"Pairing BASF's strong position as a leading supplier for cathode active materials with CATL's expertise in lithium-ion batteries will speed up innovation and the formation of a sustainable battery value chain worldwide," said Markus Kamieth, a member of BASF's board.
The partnership with BASF, the largest chemical supplier to the automotive industry, will also further CATL's localization strategy in Europe, helping it secure a raw-material supply chain in the region.
The Chinese company began building its first factory in the region in 2019, breaking ground on a lithium-ion battery-production plant in Germany.
No financial details of the partnership were provided.
Write to Fabiana Negrin Ochoa at email@example.com
(END) Dow Jones Newswires