BASF to Receive DOE Funds to Build North America’s Largest Lithium-Ion Materials Production Facility

August 5, 2009

FLORHAM PARK, N.J., Aug. 5 /PRNewswire/ — BASF, the world’s leading chemical company, today announced that it has been selected to receive a $24.6 million grant from the Department of Energy (DOE) under the American Recovery and Reinvestment Act – Electric Drive Vehicle Battery and Component Manufacturing Initiative (DE-FOA-0000026). The received DOE funds will be applied to construction of BASF’s new lithium-ion battery materials production facility in Elyria, Ohio. Under the terms of the plan — which still need final approval by the BASF SE Board of Executive Directors – the BASF facility is expected to be the largest cathode material production plant in North America. The DOE grant represents approximately half of the necessary funding to construct the estimated $50 million facility, requiring matching funding from BASF.

The facility’s creation supports the company’s long term growth and development strategy for the lithium-ion materials and battery markets and will mean job creation for skilled labor in the local region. The automotive industry represents the largest potential marketplace for lithium-ion batteries and BASF aims to become the cathode materials supplier of choice to automotive lithium ion battery suppliers. Since 2005, BASF has invested several million dollars in research and development of lithium-ion materials and as part of BASF’s long-term strategy, will continue similar investment moving forward.

“BASF is excited to be selected to receive funding from the Department of Energy to help facilitate the building of the North America’s largest lithium-ion battery materials production facility in Elyria, Ohio,” said Joseph Breunig, BASF Corporation President of Market and Business Development. “The proposed facility will put BASF and the region at the leading edge of the lithium-ion battery market while creating a more sustainable environment, helping move the economy forward and creating new and needed jobs.”

The main focus of the new facility will be to mass produce and market composite cathode materials to manufacturers of advanced lithium-ion batteries in the transportation industry, as well as other consumer applications and devices.

According to the proposed plan, during the plant construction phase numerous primary jobs and additional secondary jobs of equipment vendors, suppliers and contractors will be created. As outlined, once the plant is operational, BASF will add additional personnel for plant operation and support. Created positions at the new facility will include engineering and technical positions providing vast opportunities for the area’s skilled labor force.

“The DOE grant program and the opening of the proposed BASF materials facility in Elyria will allow us to significantly contribute to achieving President Obama’s goal of having one million Electric Vehicles on the road by 2015,” said Dr. Thomas Weber, Managing Director, BASF Future Business. “As the world’s largest chemical company, BASF has the ability to make advanced lithium-ion materials widely available and will play a leading role in penetrating the U.S. marketplace as next generation lithium-ion battery production begins in facilities throughout the country.”

Earlier this year, BASF announced a world-wide licensing agreement with the DOE’s Argonne National Laboratory to further develop Argonne’s large and diverse suite of lithium-ion battery inventions and patents. The further development and commercialization of the cathode materials will result in advanced batteries that are higher-performing, longer-lasting and safer when compared to the existing technology that has dominated the market for nearly two decades.

About BASF Future Business GmbH

BASF Future Business GmbH, a 100 percent subsidiary of BASF SE, was founded in April 2001. It aims to open up business areas with above-average growth rates that lie outside BASF’s mainstream activities. The company focuses on chemistry-based new materials, technologies and system solutions. BASF Future Business GmbH commissions research from BASF’s R&D units but also cooperates with startup companies, industrial partners, universities and potential customers. Other alternatives include the acquisition of direct stakes, joint ventures with partner companies or provision of venture capital via the subsidiary BASF Venture Capital GmbH. Further information on BASF Future Business is available on the Internet at www.basf-fb.de.

BASF – The Chemical Company. We don’t make a lot of the products you buy. We make a lot of the products you buy better.((R))

BASF Corporation, headquartered in Florham Park, New Jersey, is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has more than 15,000 employees in North America, and had sales of approximately $17.5 billion in 2008. For more information about BASF’s North American operations, or to sign up to receive news releases by e-mail, visit www.basf.com/usa.

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals, as well as oil and gas. As a reliable partner, BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges, such as climate protection, energy efficiency, nutrition and mobility. BASF has approximately 97,000 employees and posted sales of more than euro 62 billion in 2008. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

SOURCE BASF Corporation

Source: newswire

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