Giant battery maker CATL sets $4.4B to expand mining

Contemporary Amperex Technology (CATL), one of the world’s largest battery makers, has earmarked $4.4 billion to push deeper into mining amid a global energy shock that has raised fears over the supply of raw materials to power electric vehicles. 

The Chinese company said Wednesday it has 30 billion yuan ($4.4 billion) to create a new subsidiary, according to a filing to the Shenzhen Stock Exchange. Its business scope would include mineral exploration, metals processing and sales of chemical products.

The investment arm aims to “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,” CATL said in the filing.

While CATL owns a major lithium mine, until now the company has remained primarily a battery manufacturer. The move comes as costs and supply risks for raw materials such as lithium have increased, with prices surging 140% over the past year, while nickel and cobalt have also risen amid export curbs in Indonesia and the Democratic Republic of Congo.

Chinese assets

CATL owns and operates lithium assets in China including the Jianxiawo lepidolite mine in Jiangxi — although that has been mothballed since August due to permit issues — and stakes in projects in Sichuan. The company had targeted mine ownership, equity stakes and long-term supply deals to manage lithium costs and supply risk rather than building a diversified mining portfolio. 

CATL’s plans to establish an upstream mining business could also accelerate its entry into the automotive and energy storage system markets, Zhou Ling, a hedge fund manager at Shanghai Shiva Investment, told the South China Morning Post.

Last week, Bloomberg reported that the company has tapped Chen Jinghe — founder and ex-chairman of Zijin Mining Group — as an advisor for its growing mining business. Chen, who stepped down last year, helped to transform Zijin from a small gold operation in China to one of the world’s largest miners.

Also on Wednesday, CATL released its results for the January-March quarter, highlighted by a 49% year-on-year jump in net income in the first quarter to 20.7 billion yuan, beating analysts’ estimates. In 2025, the Ningde, Fujian-based company posted a net profit of 72.2 billion yuan, up 42% from a year earlier.