BASF acquires US battery component maker

(SeeNews) - Apr 26, 2012 - German chemicals group BASF SE (ETR:BAS) said today it had acquired US battery component maker Novolyte Technologies from US private equity firm Arsenal Capital Partners, for an undisclosed sum.

Novolyte, which is based in Cleveland, in the US state of Ohio, manufactures electrolyte formulations for lithium-ion batteries, as well as specialty chemicals. It has sites in the United States and China.

As part of the deal, BASF will acquire 10 patent families in the fields of electrolyte formulation and performance chemicals. Besides, BASF will continue a joint venture of Novolyte with Korean Foosung Co, a producer the high-purity specialty salt Lithium Hexafluorophosphate (LiPF6), a key material for manufacturing lithium-ion battery electrolytes. The German company will thus take over the operation of a new plant in China for the production of LiPF6, together with Foosung.

The acquisition is in line with BASF's long-term objective of becoming the leading provider of functional materials and components that are used by cell and battery manufacturers worldwide, the company added.