BASF Report 2021 Management’s Report – Material Investments and Portfolio Measures 40 new plant will increase BASF’s annual HMD production capacity to production capacities in what are currently the main markets: China, investments were made in the modernization of site infrastructure in 260,000 metric tons. Production is expected to start in 2024. Japan, North America and Europe. North America. To meet continuing high demand for our innovative solutions in the future, between 2022 and 2026, we will invest more In addition, BASF announced in 2021 that it will build a battery than €950 million in developing and expanding our infrastructure, Industrial Solutions recycling prototype plant in Schwarzheide, Germany. Startup is including state-of-the-art R&D facilities, and in our production and planned for 2023. The prototype plant will allow for the development formulation capacities for active ingredients as well as for seed In the Industrial Solutions segment, we are increasing global pro- of operating procedures and optimization of technology to deliver solutions. duction capacity for the antioxidant Irganox® 1010 through a project superior returns of lithium, nickel, cobalt and manganese from end- For more information on our segments, see page 72 onward to expand production at the site in Jurong, Singapore. With the of-life lithium-ion batteries. completion of the project in 2022, BASF aims to better serve the Good to know growing demand from customers in Asia, Europe, the Middle East and Africa. In addition, we increased production capacity for the Nutrition & Care ® antioxidant Irganox 1520L by 20% at the site in Pontecchio Marconi, Italy, in the first quarter of 2021. In Ludwigshafen, Germany, we started up the expanded vitamin A production facilities for the Nutrition & Care segment in July 2021. To meet the increasing demand for high-quality dispersions solu- We also invested in the expansion of alkoxylate capacities at the tions in the growing ASEAN, Australian and New Zealand markets, Verbund site in Antwerp, Belgium. we have doubled the production capacity for acrylics dispersions in Pasir Gudang, Malaysia. The additional capacities started up in the By mid-2022, BASF will increase its capacities for methane sulfonic first quarter of 2021. We are currently building our third electronic- acid by around 65% in response to growing cross-industry demand, grade sulfuric acid plant in Jiaxing, China. This investment will more strengthening its position as a leading global producer. To this end, than double BASF’s existing sulfuric acid production capacity in the we are investing in the construction of a new methane sulfonic acid country to serve the rapidly growing semiconductor industry. The plant at the Ludwigshafen site in Germany. Methane sulfonic acid New Verbund site in Zhanjiang site expansion is scheduled for completion in 2023. is an organic acid used in numerous applications ranging from chemical and biofuel synthesis to industrial cleaning and metal Based on its goal of net zero emissions by 2050, BASF has surface treatment in the electronics industry. made further progress toward reducing its carbon footprint. In Surface Technologies June 2021, we signed a purchase agreement for renewable electricity with China Resources Power, Hong Kong, China, We aim to expand our position as a leading and innovative provider Agricultural Solutions under the new Guangdong renewable energy trading rules in of battery materials and benefit from the strong growth in this market China. This will enable us to run the first plants at BASF’s new segment. A global, customer-focused production network for bat- The investment in a formulation hub for crop protection products in Verbund site in Zhanjiang entirely on renewable energy. The new tery materials is crucial here. Construction of our new production Singapore will, from 2022 onward, ensure that multiple formulation plants are scheduled for startup in late 2022. This is a significant plant for cathode materials in Schwarzheide, Germany, continued technologies are produced in close proximity to farmers in Asia step toward transforming of our energy supply in China. as planned in 2021. The new plant will use precursors from the Pacific. We also invested in the expansion of our production site Discover the smart Verbund site in Zhanjiang, China, at basf.com/zhanjiang production facility under construction in Harjavalta, Finland. The two in Sparks, Georgia, establishing a new formulation plant for seed plants are scheduled for startup in 2022 and will produce cathode treatment products, which came into operation in 2021. At the active materials for around 20 gigawatt hours of cell capacity per Nunhem site in the Netherlands, we continued the expansion of year. With these investments in Finland and Germany, BASF aims our breeding facilities for vegetable seeds with a state-of-the-art to become the first cathode active materials supplier with local tomato greenhouse, which has been available since 2021. Further