DOE prepared this Environmental Assessment (EA) to assess the potential for impacts to the human and natural environment of its Proposed Action-providing financial assistance to BASF under a cooperative agreement. DOE's objective is to support the development of the EDV industry in an effort to substantially reduce the United States' consumption of petroleum, in addition to stimulating the United States' economy. More specifically, DOE's objective is to accelerate the development and production of various EDV systems by building or increasing domestic manufacturing capacity for advanced automotive batteries, their components, recycling facilities, and EDV components. This work will enable market introduction of various electric vehicle technologies by lowering the cost of battery packs, batteries, and electric propulsion systems for EDVs through high-volume manufacturing. Under the terms of the cooperative agreement, DOE would provide approximately 50 percent of the funding for BASF to construct a commercial-size manufacturing plant for cathode material. The plant would be constructed on existing BASF property located in Elyria, Ohio, and it would help meet the growing needs of domestic and global lithium-ion battery cell producers. The cathode materials to be produced are based on technology licensed from DOE. The plant can produce enough material to supply a battery manufacturer making from 20,000 to 100,000 plug-in HEV batteries and/or their cells per year or equivalent volumes of other EDV batteries. For purposes of production volume estimation, each plug-in HEV is assumed to capable of delivering at least 5 kilowatt hours of available energy. Additionally, the project would create a number of permanent jobs. The environmental analysis identified that the most notable changes, although minor, to result from BASF's Proposed Project would occur in the following areas, although minor: air quality, noise, and solid and hazardous wastes. No significant environmental effects were identified in analyzing the potential consequences of these changes.