Asia Tech Wire (June 25) -- German chemical giant BASF has decided to withdraw from a $2.6 billion nickel and cobalt project in Indonesia.

BASF announced Monday that it will no longer further evaluate the possibility of building a nickel and cobalt refining complex in Indonesia's Weda Bay, halting all ongoing negotiations.

In 2020, the chemical giant signed an agreement with France-based mining company Eramet to jointly evaluate the potential of the project, which is due to involve an investment of up to $2.6 billion.

BASF said, "Since the inception of the project, the global nickel market has changed significantly. In particular, the supply options have evolved and with that BASF's availability of battery grade nickel."

"Consequently, BASF no longer sees the need to make such a substantial investment to ensure a resilient metals supply for its battery materials business," it added.

Like lithium, nickel and cobalt are essential metals for the manufacture of electric vehicle batteries.