Stock Markets April 28, 2026 05:14 PM

Duracell Will Face BASF Trade Secrets Suit, U.S. Judge Rules

Delaware judge declines to dismiss litigation alleging misappropriation tied to lithium-ion cathode process

By Nina Shah
Duracell Will Face BASF Trade Secrets Suit, U.S. Judge Rules

A U.S. district judge has refused to dismiss a 2025 lawsuit by BASF accusing Duracell, owned by Berkshire Hathaway, of stealing trade secrets related to a proprietary process for producing a high-performance cathode material used in lithium-ion batteries. The decision is under seal while the parties propose redactions.

Key Points

  • A U.S. District Judge in Delaware denied Duracell's motion to dismiss BASF's April 2025 trade secrets lawsuit alleging misappropriation of a proprietary cathode production process.
  • BASF contends it invested heavily in creating a high-performance cathode material and accuses Duracell of providing misappropriated information to a third party and arranging manufacturing under false pretenses.
  • Duracell maintains it developed the process before working with BASF, argues that licensed intellectual property cannot be misappropriated, and says BASF waited too long to sue - implications touch the chemicals and battery manufacturing sectors.

A federal judge in Delaware has denied Duracell's motion to dismiss a lawsuit filed by German chemical maker BASF that alleges the battery maker misappropriated trade secrets connected to a proprietary lithium-ion battery process.

U.S. District Judge Gregory Williams on Tuesday rejected Duracell's effort to throw out the April 2025 complaint, according to court filings that are currently under seal while proposed redactions from both companies are considered. Lawyers for the two firms had not submitted public comments on the sealed ruling at the time of filing.

In its complaint, BASF said it invested significant resources to develop a proprietary production method for a high-performance cathode material it described as a crucial component for lithium-ion batteries. BASF alleged that Duracell feigned compliance with a collaboration agreement, transferred misappropriated information to a third party, and orchestrated manufacturing arrangements while falsely claiming responsibility for the process, causing substantial and irreparable harm.

Duracell responded by asserting it had invented the process years before collaborating with BASF and maintained that it cannot be accused of misappropriating intellectual property that was licensed to it. The company also argued that BASF delayed too long before initiating litigation.

The complaint comes amid BASF's corporate restructuring efforts. In December 2023 the company announced plans to separate its battery chemicals business and two other units into autonomous divisions to drive earnings improvements. Lithium-ion batteries, for which the disputed cathode material is used, power a wide range of products including consumer electronics, electric vehicles, home appliances, toys and energy storage systems.

Duracell, acquired by Berkshire Hathaway from Procter & Gamble for about $2.9 billion in 2016, is named in the suit. Warren Buffett was Berkshire's chief executive at the time of the purchase and remains chairman. The judge's ruling allows BASF's case to proceed in federal court; the public record of the decision remains partially sealed pending the proposed redactions.


Legal posture and next steps

With the motion to dismiss denied, the case will move forward through the litigation process unless the parties reach a private resolution or the sealed ruling is later altered. The precise timeline and scope of discovery, or any further motions, will depend on subsequent court filings and scheduling orders.


Context

  • BASF alleges misappropriation of a proprietary cathode production method for lithium-ion batteries.
  • Duracell contends it had prior rights to the process and that BASF’s suit was untimely.
  • The judge’s decision is under seal pending redactions submitted by both parties.

Risks

  • Legal uncertainty for the companies involved while the lawsuit proceeds - this affects stakeholders in the chemicals and battery manufacturing sectors.
  • Potential for reputational and commercial harm if allegations of misappropriation influence customer or partner relationships in industries that rely on lithium-ion technology.
  • Operational and financial impacts depending on the scope of discovery, possible injunctions, or settlement terms, which could affect supply arrangements for battery components.

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