BASF, Eramet Cancel $2.6 Billion Nickel Project on EV Slump
- Sonic Bay refinery in Indonesia will no longer be built
- BASF says such a substantial investment isn’t needed
Bags of ferronickel bound for shipment on Obi Island, North Maluku, Indonesia.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
BASF SE and Eramet SA abandoned plans to spend up to $2.6 billion building a nickel-cobalt refinery in Indonesia, reversing course after slowing sales growth for electric vehicles crimped demand.
Global availability of battery-quality nickel has improved since the project was conceived, BASF said Monday in a statement. A surge in EV sales has also dimmed in the past year, leading to declines in nickel and cobalt prices.