Shanghai (ZXZC)- On March 30, Chinese battery manufacturer SVOLT and BASF Shanshan, the joint venture between German chemical producer BASF and Chinese lithium battery materials supplier Ningbo Shanshan, signed an agreement under which both parties will hold 10% equity interests in Hunan Yongshan Lithium Co., Ltd. (“Yongshan Lithium”), an affiliate company of Ningbo Shanshan, according to a post on SVOLT's WeChat account.

Photo credit: SVOLT

Under the agreement, the three parties will enter into strategic cooperation in such fields as industrial capital, supply of lithium salt and lithium minerals.

Meanwhile, SVOLT also inked a framework agreement for the strategic collaboration with Yongshan Lithium.

The new investment and collaboration are expected to help SVOLT improve its advantage of raw materials costs, so as to enhance its industrial competitiveness, the battery maker said.

The latest move made the partnership between BASF and SVOLT further deepened. In October 2021, BASF and SVOLT entered into an agreement in which both parties would partner throughout their global operations with regards to cathode active materials (CAM) development, raw materials supply and battery recycling for SVOLT's battery cells.

The cooperation was also expected to enhance both companies' R&D capabilities in sustainable battery materials and strengthen the duo’s core competitiveness in the largest battery market, China, and globally. Both companies would also assess joint upstream resourcing to strengthen the security of raw material supply.