14 April 2023

BASF is currently evaluating an investment for the development of a nickel-cobalt refining complex in Indonesia together with Eramet, a global mining and metallurgical company, to supply the growing electric vehicle market with cathode active materials. BASF has not yet decided whether this project will be implemented.

Part of the evaluation process is an intensive assessment of environmental, social and governance (ESG) risks against the benchmark of the International Finance Corporation (IFC) standards, the Equator Principles and the International Responsible Mining Assurance (IRMA) standard, as reasonably applicable to the mining and processing companies involved. This reflects BASF's commitment to high ESG standards as expressed, for example, in our Code of Conduct and corporate strategy. Any final investment decision by BASF will take these aspects into consideration.

Our goal with this project is to make sure that critical raw materials for battery materials that are essential for the transformation towards electromobility are available and sourced in the most responsible and sustainable way possible.

The concerns raised by Survival International are part of our ongoing risk assessment and evaluation. We take their concerns very seriously. We are generally thankful to learn from civil society participants about their topics of concern. This is a crucial element of a comprehensive due diligence regarding environmental, social and governance topics. We have contacted Survival International and invited them to further discuss their concerns. We are looking forward to a constructive dialogue.