Industry News

BASF Considers Layoffs at Finland Battery Plant Amid Permitting Delays

April 15, 2024

Company sites lengthy process as a major obstacle to production startup.

BASF said April 11 it will consider layoffs for an indefinite period at its battery materials plant in Finland due to a lengthy permitting process.

The company completed construction of the plant in Harjavalta, Finland, in 2023 but has encountered regulatory delays. BASF plans to produce precursor cathode active materials at the facility.

The company received the first permit from Finnish authorities in 2020 after an extensive environmental impact assessment, said Tomi Oja, managing director of BASF Battery Materials Finland Oy.

“Since then, we have been on a painful journey with several cycles of permits being granted, appealed, and – unfortunately – not upheld,” he said. “We are disappointed to have received different signals from authorities and the administrative courts. In a dynamic market like the battery market, which requires major investments, both speed and certainty are essential for business planning.”

In February, a Finnish administrative court suspended enforcement of an environmental permit, leaving the plant’s startup date in limbo, the company said. The delay has long-term financial implications for BASF’s operations in Harjavalta.

“BASF must therefore adapt its operations and manage its costs in order to deal with the current situation,” the company said in a news release.

The company will begin negotiations with employees regarding potential layoffs on April 15. The negotiations are expected to take six weeks.

About the Author

Jonathan Katz | Executive Editor

Jonathan Katz, executive editor, brings nearly two decades of experience as a B2B journalist to Chemical Processing magazine. He has expertise on a wide range of industrial topics. Jon previously served as the managing editor for IndustryWeek magazine and, most recently, as a freelance writer specializing in content marketing for the manufacturing sector.

His knowledge areas include industrial safety, environmental compliance/sustainability, lean manufacturing/continuous improvement, Industry 4.0/automation and many other topics of interest to the Chemical Processing audience.

When he’s not working, Jon enjoys fishing, hiking and music, including a small but growing vinyl collection.

Jon resides in the Cleveland, Ohio, area.