BASF Report 2021 Management’s Report – Raw Materials 115 initiatives, for example, in Morocco for our argan-based products, subject matter is the assessment of a joint investment in a pyrolysis metals from scrap of cell manufacturers and battery material pro- and in India for our active ingredients based on the moringa tree. plant for plastic waste. ducers that do not meet product specifications. For more information on biodiversity, see page 138 onward For more information on the circular economy, see page 44 For more information on our voluntary commitment to palm oil products and the Palm Progress We have also made further progress with the chemical recycling of Report, see basf.com/en/palm-dialog used mattresses made of flexible polyurethane. It is based on a wet chemical process developed by BASF. After initial successful trials, Mineral raw materials our teams continued developing the process in 2021. Precursors Recycled feedstocks recovered from old mattresses can now be used to produce new We procure a number of mineral raw materials, which we use to mattress-sized blocks of flexible polyurethane foam. The new pro- produce automotive and process catalysts or battery materials, Recycling is becoming increasingly important due to limited resources, cess is currently being optimized and tested on a larger scale. among other products. We are continually improving our products growing sustainability requirements in the markets and regulatory and processes to minimize the use of primary mineral raw materials. developments. We want to increase the use of recycled feedstocks We have many years of experience and a high degree of specializa- At the same time, we are driving forward the recycling of mineral raw with our Circular Economy Program: From 2025 onward, we aim to tion in recycling precious metals such as platinum, palladium materials, for example, by recovering platinum metals from auto- process around 250,000 metric tons of recycled and waste-based and rhodium. They are used in automotive catalysts as well as in motive and process catalysts and using these as secondary raw materials every year worldwide, replacing fossil raw materials process and chemical catalysts. We primarily use the precious resources (see “Recycled feedstocks”). (see page 44). metals recovered in this way as feedstocks in catalyst production. With the expansion of our refinery plant in Seneca, South Carolina, Sourcing mineral raw materials responsibly is important to BASF. We A focal point of our activities here is chemically recycling plastic and the acquisition of assets from Zodiac Enterprises in Caldwell, implemented measures to meet the requirements of the E.U. Conflict waste. This technology complements mechanical recycling and can Texas, we are further expanding our leading position in platinum Minerals Regulation by the January 1, 2021 deadline. This defines help to reduce the amount of plastic waste that is disposed of in group metal recycling. supply chain due diligence for tin, tantalum, tungsten, their ores and landfill or thermally recovered. Chemical recycling breaks down gold (3TG) imported into the E.U. from conflict-affected and high- plastics into their building blocks or converts them into basic chemi- The growing demand for electromobility is also increasing the need risk areas (CAHRAs). To supplement our Supplier Code of Conduct cals. Different methods are used to achieve this. for lithium-ion battery recycling. As a leading producer of battery (see page 109), we introduced a Group-wide Supply Chain Policy materials with future local production capacities in the three main for Conflict Minerals in 2021. It contains expectations for our TM project, our technology partners use the In our ChemCycling markets – Asia, Europe and North America – BASF has in-depth suppliers from CAHRAs and outlines voluntary commitments. pyrolysis process to extract pyrolysis oil from mixed plastic waste or expertise in battery chemistry and process technology. We are used tires, which were not previously recycled. We can feed this utilizing these competencies to address battery recycling as an In addition to responsible procurement of the 3TG minerals, BASF is pyrolysis oil into our Verbund as an alternative to fossil raw materials additional growth market in cooperation with partners along the committed to responsible and sustainable global supply chains for and use it to make new products. These have exactly the same value chain (see page 30). In this way, we want to ensure that valu- other mineral raw materials as well. These include cobalt, a key properties as products manufactured from fossil feedstocks. We able metals remain in the production cycle for as long as possible. component in the production of battery materials for electric vehi- use a certified mass balance approach to allocate the percentage This conserves resources while enabling production of cathode cles, among other applications. Our cobalt supply chain is organized of recycled content to the end product (see page 113). In 2021, active materials in Europe with a significantly lower carbon footprint according to special sustainability criteria. Our goal is to not purchase TM we were able to further expand our portfolio of these Ccycled compared with the industrial standard. At the Schwarzheide site in cobalt from artisanal mines and to exclude this in supply chains as products. It now comprises around 50 products that our customers Germany, where a cathode active materials plant is already under long as responsible artisanal production cannot be verified. use, for example to manufacture transport cases for medicine, construction, we will also build a prototype plant for battery recycling high-performance plastics for the automotive industry, packaging by 2023. The prototype plant will allow for the development of new Together with BMW, Samsung SDI, Samsung Electronics, Volks- materials and functional textiles. We also signed a memorandum of operating procedures and optimization of technology to deliver wagen and the German Agency for International Cooperation (GIZ), understanding in 2021 with our technology partner Quantafuel and superior recovery rates of lithium, nickel, cobalt and manganese we have been involved in the cross-industry Cobalt for Develop- Remondis, a global leader in waste and water management. Its from end-of-life lithium-ion batteries. The plant will also recycle ment initiative since 2018. It aims to improve working and living