BASF and BYD will jointly build a new materials factory

German chemicals giant BASF is considering a lithium processing project in Chile. It is exploring the possibility of building a factory that would convert lithium from Chilean salt flats into cathode material needed for electric vehicle batteries.

Relevant sources revealed that BASF recently signed an agreement with Canadian explorer Wealth Minerals Ltd., which will include the offtake of lithium.

If the project goes ahead, BASF will build a cathode factory in Chile together with Chinese companies BYD and Tsingshan Holding Group.