BASF and its partner Sinopec are considering more than doubling production capacity for ethylene at their joint venture in Nanjing, China. The two signed a memorandum of understanding to study the construction of a cracker with a capacity of 1 million metric tons per year. The agreement also envisages that BASF and Sinopec will together explore business opportunities in battery materials. The construction of a second cracker in Nanjing would likely lead to additional investments in downstream plants because ethylene is used in the production of a wide range of chemicals. The BASF-Sinopec venture in Nanjing currently operates a 750,000-metric-ton cracker that feeds downstream facilities producing several commodity and specialty chemicals. BASF has moved aggressively to increase its footprint in China this year. The company announced in July that it had begun to study the construction of a $10 billion wholly owned chemical complex in Guangdong province in southern China. That facility would also feature a 1 million-metric-ton ethylene cracker.