The move is the latest shakeup in the automotive catalyst industry after smaller rival Johnson Matthey last month planned to put its battery materials business up for sale amid heavy competition.
see photosThe carving process will begin in January and is expected to take up to 18 months
Chemicals conglomerate BASF will prepare its catalytic converter business to become a standalone subsidiary ready for “strategic choices” as the German company shifts its focus to battery materials for electric vehicles, it said on Tuesday.
“The new standalone structure will prepare the business for upcoming changes in the internal combustion engine market and allow for future strategic choices,” Germany’s BASF said in a statement.
Those options have yet to be determined, a spokesman said. BASF said the carving process would start in January and it is expected to take up to 18 months.
The move is the latest shakeup in the automotive catalyst industry after smaller rival Johnson Matthey last month planned to put its battery materials business up for sale amid heavy competition.
In September BASF predicted battery material revenue to exceed 1.5 billion euros ($1.7 billion) by 2023.
BASF, UK’s Johnson Matthey and Belgium’s Eumicor have combined the production of key materials for electric vehicles and combustion engines, competing in cathode materials for automotive batteries and catalytic converters.
But the strategic logic is now in question.
In September BASF predicted battery material revenues to exceed 1.5 billion euros ($1.7 billion) by 2023 and more than 7 billion euros by 2030 as electric vehicle production increases.
Capital investment of 3.5-4.5 billion euros from 2022 to 2030 will boost expansion, it was said at the time. BASF reiterated that budget plan on Tuesday.
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BASF is the largest chemical supplier to the transportation industry with over 20% of sales in this market in 2020.
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