TCL #62: BASF's Price Hike, Australian Coal Mine Policy Change

Citing cost volatility due to the conflict in the Middle East, BASF, the world's former biggest chemicals company by revenue, is increasing prices by up to 30%. The products affected are in the home-care, industrial and institutional cleaning, and industrial formulators segments. The reasons for this increase are -

"significant volatility in the pricing and availability of key raw materials, increasing domestic and transcontinental logistics costs, and soaring packaging and energy costs"

All this despite the company not having any production facilities in the Middle East.

According to ZEW, a think-tank, a key indicator of economic sentiment for Germany sank sharply in March 2026 to minus 0.5 points, which is a decrease of roughly 58 points from the previous month.

2026 already seems to be a difficult year from an energy and cost-of-living standpoint, with the effects of the war being felt at the gas stations in North America and the kitchens in South Asia.

Zooming out a little, the following are a few other chemical sector updates from last week that caught my eye.

Mining

Australia's New South Wales (NSW), the country's second-largest coal-producing state, released a statement on Thursday stating that it will not consider proposals for "greenfield" coal mines to combat its greenhouse gas emissions. This does not affect the operations of existing mines and their expansions. Concurrently, the NSW Environment Protection Authority (EPA), NSW's independent environmental regulator, released new rules requiring coal miners to directly reduce fossil methane emissions by capturing, treating, or converting fossil methane to less harmful forms. According to NSW EPA-

"Coal mining is the largest source of fossil methane in NSW, producing around 30 per cent of the state’s methane emissions and contributing about 11 per cent of total greenhouse gas emissions."

Nuclear Tech

NuScale Power and Ebara Elliott Energy (EEE) are joining hands on a research program wherein they will demonstrate the use of nuclear technology to power petrochemical plants. NuScale will provide its expertise in Small Modular Reactor (SMR) technology, and EEE will leverage its know-how in turbomachinery. NuScale's light-water SMR design is the first and, as of today, the only one to receive US Nuclear Regulatory Commission design approval. This research partnership aims to produce steam for industrial processes at 500^oC or higher by integrating the SMR with a heat exchanger, followed by using adiabatic compression to reach higher temperatures.

Battery

Neo Battery Materials, a Canadian producer of "silicon-enhanced" lithium-ion batteries, will make silicon-anode batteries for Association of the Republic of Korea Army (AROKA) for use in defence equipment such as drones and robotics. Neo, through its subsidiary NBM Korea Co., has also been actively involved with Zinc Co. Ltd. And Taesung Co. Ltd., to work on composite copper current collector (foil) technology that makes lithium ion batteries more suitable for applications in drones, robotics, and micromobility.

Biomaterials

Elea & Lili (yes, not Eli Lilly), a startup coming out of VTT Technical Research Centre of Finland, has received €2.5 million (~$2.89 million) in seed funding round. The startup develops biodegradable and microplastic-free alternatives to fossil fuel-based superabsorbent polymers (SAP). The funds will be used to support pilot production, industrial partnerships, regulatory validation, and initial product launches in the US and Europe. Currently, the startup's products are being developed for use in disposable diapers and agricultural applications where water retention can support effective water management.