CATL to pursue more direct mining investment

Chinese electric vehicle battery manufacturer CATL has confirmed a plan to create a new mining investment and operating platform to expand direct involvement in minerals exploration and development. The investment arm, with “registered capital” of circa-US$4.4 billion, would “integrate existing mining assets, pursue high-quality mineral projects at home and abroad, and safeguard supply of raw materials for the company’s core business”.

Hong Kong and Shenzhen Stock Exchange-listed Contemporary Amperex Technology Ltd said in its recently released 2025 annual report it was actively working to “further secure the supply of upstream key resources and materials required for battery production” via investment in and construction and operation of lithium, nickel, cobalt and phosphorus projects.

“The company’s battery material products mainly include lithium salts, precursors and cathode materials. The company also processes, purifies and synthesises metal materials such as nickel, cobalt, manganese, lithium, phosphorus, iron, aluminium and copper, as well as other materials, from spent batteries through recycling processes,” CATL said.

“It produces cathode materials, ternary precursors, iron-phosphate precursors and lithium salts required for lithium battery production.”

CATL said Shanghai Metals Market data showed China’s domestic production of ternary and lithium iron phosphate cathode materials rose 51% in 2025 to 4.565 million tonnes. Access to recycled materials from a growing spent battery stockpile was also expanding.

“The company continuously deepens the global supply chain layout and continuously improves its supply chain management system and keeps up with the supply and demand and price changes in key raw material markets so as to ensure the supply of raw materials and optimise procurement costs,” CATL said.

“The company has taken measures such as self-operated mining and production of raw materials, investment partnerships and signing long-term procurement agreements to ensure the safety and stability of the supply chain.”

CATL reported a 17% year-on-year increase in sales to $62.1 billion in 2025. R&D investment reached $3.2 billion last year and has exceeded $13 billion in the past decade.

Canada’s Red Cloud Securities this week said Chinese battery production rose 50.8% in March.

“Demand could continue to see massive growth based on a rush to buy EVs in light of global petrol and diesel shortages,” the Toronto investment firm said.

“We are raising our 2026 global demand forecast from 2.7 TWh to 2.8 TWh.

“While that does not seem like much, remember 2020 global demand was less than 0.2 TWh.

“This trend bodes very well for lithium demand and pricing. Lithium prices have risen by 32%-50%, depending on the product. Lithium carbonate is $23,000/tonne, offering nearly all lithium companies a healthy premium despite higher energy and shipping costs.

“The launch of BYD 2.0, a low-cost, 1000km-range vehicle that fast charges under 10 minutes and works at minus-30C, has hit the market.

“Its manganese battery pack should be a hit and vastly increase manganese demand.”