BASF SE’s BASFY unit BASF Coatings recently announced a strategic partnership with NIO, a pioneer in the global smart electric vehicle market, to step forward in the automotive coatings sector. A Letter of Intent (LoI) has been signed to establish this partnership.

BASF, which is among the prominent players in the chemical space along with Dow Inc. DOW, DuPont de Nemours, Inc. DD and Eastman Chemical Company EMN, noted that this collaboration marks a significant step toward achieving a long-term and mutually beneficial relationship, focusing on automotive exterior coatings for NIO’s electric vehicles.

Both parties are committed to fostering platforms for cooperation that encompass market and customer development, project management and information exchange.

BASF Coatings will provide NIO with a wide range of products tailored to meet specific technical requirements and will offer value-added services, including color design, color development, digital solutions, sustainability initiatives, workshops and industry-leading technical support.

The partnership is aimed at developing and exploring new technologies for sustainable development and carbon neutrality. This cooperation is built on ten years of collaboration and is expected to shape the future of electric vehicle coatings together.

BASF delivered strong 2024 earnings and provided an upbeat outlook. Its EBITDA before special items climbed 18% year over year in 2024 to €7.9 billion, driven by solid performance of its core businesses on higher volumes amid pricing pressure. The company also saw a significant year-over-year increase in net income to €1.3 billion in 2024. BASF sees EBITDA before special items to increase to between €8 billion and €8.4 billion in 2025.

Another prominent player in the chemical industry, DOW, expects to benefit from near-term projects and increased operational focus in 2025, with increasing demand in packaging, energy and electronics. Its solid balance sheet and portfolio will support capital allocation priorities. To boost margins, the company is taking actions to cut costs by $1 billion, including $500-$700 million in direct costs and workforce reductions of 1,500 roles globally. Additionally, Dow is reducing 2025 capital spending by $300-$500 million to address macroeconomic challenges and support long-term growth.

For 2025, another industry leader, DuPont, projects consolidated net sales between $12.8 billion and $12.9 billion, with operating EBITDA expected to range from $3.325 billion to $3.375 billion. Adjusted earnings per share (EPS) are forecasted to be between $4.30 and $4.40. For the first quarter of 2025, DD forecasts net sales of around $3,025 million, operating EBITDA of roughly $760 million and adjusted EPS of around 95 cents. 

Eastman Chemical expects modest volume growth in its specialty businesses in 2025, leveraging an innovation-driven growth model. The company's circular platform will drive innovation, with commitments of $75-$100 million in EBITDA growth in 2025. EMN plans to reduce structural costs to offset inflation while investing in growth and long-term value creation. The company expects 2025 EPS to be between $8 and $8.75 and cash from operations to be around $1.3 billion.

 

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