Thread by @sdmoores

#Russia’s nickel & Germany’s #cathode and auto #EV industry.

Nornickel + #BASF: An long term term partnership descends into an unholy alliance

As Russia attacks Ukraine, our industry’s eyes are fixed on @BASF and what it does next

And here’s why…

#UkraineUnderAttack

Russia’s Nornickel (Norilsk) supplies 20% of world’s class 1 nickel - the suitable supply for lithium ion batteries and #ElectricVehicles (and 7% of global nickel)

Most of this goes to China.

#UkraineUnderAttack

Germany was relying on expanded future supply of Russian #nickel as a key pillar in its battery and #EV expansion

This is via the partnership between Nornickel and German chemical / cathode maker, #BASF

#UkraineUnderAttack

As @benchmarkmin’s @hjesanderson writes:

“Nornickel has portrayed its Harjavalta refinery as a key supplier of low-carbon
nickel for the electric vehicle industry.

The plant is increasing production from 65,000 tonnes of nickel… 100,000 tonnes by 2026” #UkraineUnderAttack

#BASF is reliant on this #nickel for:

1) making precursor cathode active material next door to Nornickel’s refinery in Harjavalta, Finland using 🇷🇺 nickel

2) this material is then shipped to Schwarzheide, 🇩🇪 to be made into cathode active materials

#UkraineUnderAttack

#BASF cathode based on 🇷🇺 nickel is then used in a wide variety of European lithium ion batteries and make their way into European #EV models

#UkraineUnderAttack

After #Putin invaded Crimea in 2014 and the west place weak sanctions, China’s #nickel imports from Russia surged in 2015 and 2016.

There’s no reason to believe China do anything but prop up Russia’s #nickel and natural resources industries #UkraineUnderAttack

All eyes are on Germany’s #BASF and this deal with #Nornickel which was a high profile #Auto and #EV supply chain blueprint for localising raw material supply

Will #BASF & #Nornickel cont to join forces when Russian forces are attempting to invade Ukraine? #UkraineUnderAttack

“As Europe is looking to build out a local supply chain, with locally sourced raw materials, this is a big headache for European automakers and cell producers,”

“It brings China and Russia ever closer together,” @GregMiller_BMI

#UkraineUnderAttack

#BASF customers - Germany’s biggest automotive #ElectricVehicles makers - have been outspoken critics of #cobalt from the #DRC

Will these same OEMs speak of Russian #nickel in the same way as DRC #cobalt?

#UkraineUnderAttack

Read more on #BASF of 🇩🇪 and Nornickel of 🇷🇺 and the key stats of the relationship here from @benchmarkmin

benchmarkminerals.com/membership/rus…