BASF’s plans for a new plant producing cathode material precursors in Harjavalta, Finland, have been halted following a recent court ruling, leading to the indefinite layoff of site employees. The construction of the plant has been on hold for several years pending authorization.
After the Vaasa Administrative Court revoked a temporary permit for the plant in February, BASF announced that negotiations with employee representatives in Harjavalta would commence due to the uncertain timeframe for receiving a final, unappealable permit. The company expressed regret over the decision, stating, “BASF is forced to consider indefinite layoffs, potentially affecting all employees at the Harjavalta site.”
Negotiations are set to begin on April 15 and will last for six weeks, with BASF emphasizing its commitment to managing the process responsibly and thoughtfully towards its employees. The company plans to provide further information once the negotiations have concluded.
Initially announced in October 2018, the plant was intended to start production by the end of 2020. The facility was planned to be built near the refinery of the Russian mining group Norilsk Nickel (Nornickel), with BASF and its partner at the time having already secured a long-term supply agreement for nickel and cobalt from the refinery.
However, due to permitting delays, the project timeline could not be met. Tomi Oja, Managing Director of BASF Battery Materials Finland Oy, expressed disappointment over the situation, stating, “In a dynamic market like the battery market, both speed and certainty are essential for business planning.”
Despite the setback, BASF remains committed to expanding its global battery materials business to meet the growing demands of the battery industry. Production at the factory in Schwarzheide, Germany, where the cathode material precursors from Harjavalta were to be processed into cathode materials for the battery industry, is not affected. The company has secured access to markets through a diversified partner network.
