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The development would include a high-pressure acid leaching (HPAL) plant and a base metal refinery (BMR), they said in a joint statement.
While the HPAL is currently envisaged to be located at Eramet's operating Weda Bay nickel mine in Indonesia, the location of the BMR would be determined during the feasibility study.
The HPAL would produce a nickel and cobalt intermediate from locally sourced ore, and the BMR would supply nickel and cobalt to make precursor cathode active materials and then cathode active materials for EV lithium-ion batteries.
Start-up of both facilities is forecast for the mid-2020s.
The planned development would provide BASF access to an additional secure source of 42,000 metric tonness of nickel and 5,000Mt of cobalt per year from mines operating according to internationally recognised sustainability standards.