Major chemical company BASF has announced it will pause plans to build a large battery recycling refinery in Spain, citing slow adoption of electric vehicles (EVs) in the European Union. The decision, announced on July 26, reflects the firm’s concerns about the current pace of EV uptake and cell capacity development in Europe. BASF will delay the project until these factors improve.
This move adds to the growing list of challenges facing the European EV battery sector. BASF had previously been forced to halt its precursor battery materials plant in Harjavalta following a court decision in February. Lower battery metals prices have also dampened confidence in the recycling industry, with rising costs affecting projects like Li-Cycle’s planned operation in Rochester, New York.
Several EV battery factories in Europe have faced delays or cancellations in recent years, leading to less feedstock for recyclers than anticipated. Projects by Italvolt and Britishvolt have been scrapped, and ACC plants in Germany and Italy are on hold.
Despite the growing capacity to shred batteries and produce black mass—a key material in recycling—Europe still lacks sufficient operational capacity to process it. Firms investing in post-processing technology have mostly been limited to pilot or demonstration plants, including BASF’s prototype metal refinery for lithium-ion battery recycling in Schwarzheide, Germany.
The oversupply of materials in Europe has led to lower black mass payables compared to Asia. As of July 24, Fastmarkets’ weekly assessments indicated that black mass payables in Europe were 55-60% of the LME nickel cash official price and 55-60% of the standard-grade cobalt price, unchanged from the previous week. In contrast, Southeast Asia’s black mass payables were slightly higher, at 66-70% of the respective prices, though they had decreased by 1-2 percentage points week on week.
