Battery expansions: Stora Enso’s pilot plant for lignin-carbon batteries; BASF/CATL tie-up for cathode active materials and battery recycling

The global battery market is projected to grow tenfold over the next decade as battery producers seek more sustainable materials for the electrification of mobility. Since sustainability is becoming a top priority for the automotive industry, car manufacturers and battery producers are focusing heavily on reducing carbon emissions in electric cars.

In view of this, Finnish materials maker Stora Enso’s pilot facility for producing bio-based carbon materials from lignin has started operations. This follows the company’s EUR10 million investment announced in 2019. Pilot production of Lignode by Stora Enso, wood-based carbon for batteries, is currently being ramped up. Applications include electric vehicles and consumer electronics as well as large-scale energy storage systems. The pilot plant is located at Stora Enso’s Sunila production site in Finland, where lignin has been industrially produced since 2015. The biorefinery’s annual lignin production capacity is 50,000 tonnes, making Stora Enso the largest kraft lignin producer in the world.

Today, fossil-based carbon is used in the anodes of rechargeable batteries. By converting lignin separated from wood into carbon-based anode materials, the synthetic and non-renewable graphite material can be replaced.

“With our pilot plant now ramping up operations, Stora Enso is entering a new value chain in supplying more sustainable anode materials for batteries. With Lignode, we can provide a bio-based, cost-competitive and high-performance material to replace the conventionally used graphite. To serve the fast-growing anode materials market, we are now exploring strategic partnerships to accelerate scale-up and commercialisation in Europe,” says Markus Mannström, Executive Vice President of Stora Enso’s Biomaterials division.

Meanwhile, in other news German chemicals maker BASF SE and Contemporary Amperex Technology Co., Limited (CATL) are in a strategic partnership on battery materials solutions, including cathode active materials (CAM) and battery recycling. The collaboration aims at developing a sustainable battery value chain, in support of CATL’s localisation in Europe and contributes to achieving both companies’ global carbon neutrality goals.

CATL is a global leader in innovative new energy technologies and has launched its project to build up its first European factory in Germany to localise lithium-ion battery production. With this, it is accelerating the development of a local supply chain for European customers and consumers.

As the largest chemical supplier to the automotive industry, BASF has established a strong position in the CAM market including a global manufacturing and R&D footprint, and a broad portfolio of mid- to high-nickel, manganese-rich, cobalt-free CAM. In Europe, BASF is introducing CAM production with an industry-leading carbon footprint through its advanced process technology, a secured local raw materials supply chain, a favorable energy mix for production, as well as short and effective logistics along the supply chain.

The strategic partnership with CATL allows BASF to closely work with a globally leading battery producer on CAM and battery recycling. This cooperation will deepen BASF’s expertise and strengthen its global market position.

Through the partnership with BASF, CATL targets to improve its European service capabilities by developing a localized battery recycling network and a secure raw material supply chain in the region.

“The transformation towards electromobility requires strong partnerships along the value chain,” said Dr. Markus Kamieth, Member of BASF’s Board of Executive Directors. “Pairing BASF’s strong position as a leading supplier for cathode active materials with CATL’s expertise in lithium-ion batteries will speed up innovation and the formation of a sustainable battery value chain worldwide.”

“The partnership with BASF is another important step for our localization journey in Europe,” said Zhou Jia, President of CATL. “With CATL’s innovative battery technology and BASF’s deep materials expertise, we will further enhance our capability to support our worldwide customers and accelerate the global drive towards carbon neutrality.”

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