French industrial gases firm Air Liquide has entered into a new long-term contract to provide oxygen and nitrogen to BASF’s battery materials plant in Schwarzheide, Germany, a company release recently announced. To support the relationship, Air Liquide also plans to build a new, €40 million (about $48 million) air separation unit (ASU) at the site.

“We are pleased to extend our long-term relationship with BASF to contribute to the development of their state-of-the-art battery material production at their flagship site of Schwarzheide,” Francois Jackow, executive vice president and a member of the French company’s executive committee, said in a statement. “Air Liquide accompanies leading customers through its technological know-how and innovative solutions. This investment will also provide momentum for our growing Industrial Merchant activity in Germany and Poland.”

Slated to become operational in 2023, the ASU will also manufacture liquid products for Air Liquide’s Industrial Merchant market. BASF’s battery materials plant will produce components for 400,000 electric vehicles each year.

The company its new asset in Schwarzheide will expand its supply of industrial gases in Europe and enable it to optimize bulk trucking routing to reduce its environmental impacts in the continent.

Last September, Powder & Bulk Solids reported that Air Liquide revealed plans to build a new Air Separation Unit (ASU) and Partial Oxidation Unit (POX) as part of a new long-term supply agreement to provide gaseous oxygen, nitrogen, and syngas to Eastman Chemical’s facility in Longview, TX.