BASF scales up anode binder production in U.S., bets big on EVs

CHARLOTTE, N.C.—BASF Group is betting on the American electric battery industry, even with questions swirling around the country's EV market.

In March, the German chemicals firm launched its plan for global production for its Licity-brand anode binders, including a production upscaling project in the U.S. BASF is focused on leading the "second green revolution" on a company-wide level, and officials say stepping up production in the U.S. could be a big step in achieving global electric battery adoption.

The new anode binders are sustainable and highly customizable to the various needs of several industries, the company said. The new product, it added, will be able to stay ahead of the trends of an ever-evolving battery industry, thanks in part to its ability to increase battery capacity and reduce charging times.

Denise Hartmann, senior vice president of dispersions and resins Americas at BASF, said that the global launch is a testament to the growth of the battery industry in North America. In order to increase production, the company has added the binder manufacturing capabilities to two of its sites in Monaca, Pa., and Chattanooga, Tenn.

"This is an important step for the North American battery industry," Hartmann said. "With the expansion of manufacturing capability for Licity anode binders in the U.S., we are pleased to now support the growth of our customers in all regions of the world."

The binder's design keeps EV applications in mind, company officials said, but its aim goes beyond just catering to that industry. BASF's new anode binders can help the battery industry overcome the limitations of lithium-ion batteries at large, according to Natalie Nicewicz, BASF's market segment manager for its nonwoven products.

"When understanding Licity's value, we look (at) physical and electrochemical properties," Nicewicz said. "Physical properties are important to consider since batteries can swell as they charge and discharge. BASF looks closely at bending, peeling, adhesion properties to make sure that the battery structure stays intact over the life of the battery.

"Electrochemical properties are also important because they impact the lifetime of the battery and can also impact the overall safety of the battery," she said. "BASF evaluates cycle performance over 500 and 1,000 cycles, looking at DCIR—direct current internal resistance—which impacts the ability to charge quickly, and capacity retention, which impacts the longevity of the battery."

The binders themselves are made of styrene butadiene rubbers, which help bind the battery's metal parts to the foil components and help connect the battery's circuit. Nicewicz said that the company already had enough SBR production to handle a project like this; starting the endeavor was a matter of allocating the company's rubber resources.

"(The new anode binders) will not impact our manufacturing processes since we have well-established SBR production," she said. "We have multiple decades of experience in SBR production, so while Licity is a growth area for BASF, it is well within our established capabilities."

Along with the anode binders themselves, BASF has a portfolio of other products to aid battery production, including cathode additives, cathode active materials, metal pre-treatment products and battery charging infrastructure.

Although BASF continues to dip into other markets, automobiles will be the primary application for the new products. With production increasing, the firm is looking to aid widespread adoption of EVs, even as the industry sits in an uncertain spot.

Nicewicz said that business strategy firms are expecting solid growth rates for batteries over the coming years thanks to EV adoption. But the wider business world still is set to battle a few issues in getting electric battery product adoption off the ground, especially in the wake of the Trump administration's rollback on EV mandates in the U.S.

"The Inflation Reduction Act put pressure on manufacturers to source domestic material to be eligible for the EV tax credit," Nicewicz said. "Now, tariffs are putting cost pressure on imported raw materials, regardless of end application or eligible credits. As battery manufacturing capacities and battery adoption rates grow, there will be continual pressure on costs. Therefore, domestic production will help to eliminate unnecessary transport and tariff costs.

"Additionally, the reduction or elimination of supply chain steps and ultimately delays are critical. Domestic supply will eliminate variability of shipping across oceans and increase our responsiveness to demand changes."

Despite concern about Trump's tariffs and EV mandate rollbacks, the market is looking up for electric batteries, according to industry experts. Business strategy firms are expecting about 15-percent growth rates for batteries across the globe throughout the next decade, even in the face of issues like slow technology adoption rates, a potential recession and a lack of governmental support in North American countries.

"Based on commentary at the International Battery Seminar in March, there is still optimism for the promise of batteries," Nicewicz said, "but the current economic climate could dampen current growth rates and push out battery adoption rates."