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BASF Launches Commercial Operations of Black Mass Plant in Germany

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Key Takeaways

  • BASFY launched its Black Mass battery recycling plant in Germany with a 15,000-ton annual capacity.
  • The facility supports circular economy goals by recovering lithium, nickel, cobalt and manganese.
  • BASF now covers the full European battery recycling chain, from collection to production and refining.

BASF SE (BASFY - Free Report) recently commenced commercial operations at its Black Mass plant in Schwarzheide, Germany. This cutting-edge facility marks a key milestone for BASF's battery recycling operations. It is one of Europe's largest commercial Black Mass facilities, with an annual processing capacity of up to 15,000 tons of used lithium-ion batteries and production scrap. This equates to around 40,000 electric vehicle batteries each year.

The successful initiation of commercial operations at this facility is a significant step forward for the European battery industry. Battery recycling is an important step toward growing independence from primary raw material sources and attaining the ambitious goals of circular economy policies. Black mass production is a critical phase in the battery recycling process that relies on mechanical treatment of the batteries. The Black Mass contains significant concentrations of essential metals utilized in the production of cathode active materials (CAM), including lithium, nickel, cobalt and manganese. These rich metals can be chemically recovered and utilized to make new CAM, allowing for circularity and lowering the carbon impact compared to using only primary raw materials.

The new Black Mass facility demonstrates the company's commitment to the Battery Materials and Recycling industry, which continues to be one of the most promising growth possibilities in the chemical industry and for BASF Battery Materials. It will become a cornerstone of the company's client offers, increasing raw material self-sufficiency and ensuring compliance with the EU Battery Regulation.

BASF's offering in Europe encompasses all stages of the battery recycling value chain, from collecting end-of-life batteries and production scrap to discharging and dismantling, as well as Black Mass production and refining, leveraging a strong and dependable partner network in addition to BASF's own Black Mass manufacturing facility. Apart from the new Black Mass production, BASF operates in Schwarzheide Europe's first completely automated CAM production, a prototype metal refinery for battery recycling and one of Europe's largest Black Mass storage facilities.

Shares of BASFY have lost 3.9% over the past year compared with a 26.3% decline of its industry.

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BASFY’s Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Alamos Gold Inc. (AGI - Free Report) and Hawkins, Inc. (HWKN - Free Report) .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 139.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alamos Gold current-year earnings is pegged at $1.24 per share. AGI, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 1.4%. The company's shares have rallied 65.1% in the past year.

Hawkins, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 8.2%, on average. The company's shares have rallied 54.6% in the past year.

 

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