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BASF reconsiders battery chemical investment move amid EV slump

BASF reconsiders battery chemical investment move amid EV slump

FRANKFURT (Reuters) – German chemicals giant BASF said it will review a major investment move to build a global production network for battery materials amid a downturn in the electric vehicle segment.

“Future investments will be subject to critical scrutiny and a new assessment,” a company spokesman was quoted as saying in a statement to the weekly WirtschaftsWoche on Thursday.

BASF has previously said its goal of creating a global supply network for cathode materials for electric vehicle batteries is one of two major investment initiatives, the other being a new 10 billion euro ($10.8 billion) chemical complex in China.

BASF decided in December last year to give its battery chemicals unit more autonomy alongside two other divisions.

French miner Eramet, a partner of BASF, announced last month that the two companies had cancelled a $2.6 billion joint investment in a refinery complex in Indonesia to produce nickel and cobalt for batteries.

($1 = 0.9231 euros)

(Reporting by Ludwig Burger and Patricia Weiss, editing by Rachel More)