Contemporary Amperex Technology Co., Limited (CATL) has established a new resources unit with a registered capital of 30 billion yuan ($4.1 billion) to invest in and mine key battery metals, a move to secure its upstream supply chain.
The new entity, Times Resources Group (Xiamen), is a wholly-owned subsidiary of CATL and will manage investments and operations in the new energy minerals sector, according to Qichacha information cited by mainland media.
The unit's business scope includes mineral resources exploration and the mining of non-coal mineral resources. This follows a growing trend of battery manufacturers investing directly in mining to mitigate commodity price volatility and ensure a stable supply of materials for electric vehicle production.
The move signals a strategic shift for the world's largest battery maker, as the electric vehicle supply chain becomes increasingly politicized, similar to the oil and gas sector. Securing its own mineral supply is expected to strengthen CATL's market leadership and reduce long-term cost volatility.
The establishment of Times Resources Group is a direct response to the increasing competition for critical minerals such as lithium, cobalt, and nickel, which are essential for the production of electric vehicle batteries. By bringing mining and exploration in-house, CATL aims to gain more control over its raw material costs and availability, a strategy already being employed by rivals like BYD Co. and global automakers such as Tesla.
"The electric vehicle supply chain is rapidly transforming into a strategic and politicized sector similar to oil and gas," said Adam Dawes, an analyst at Shaw and Partners, in a recent interview. He noted that battery manufacturers are investing directly in mining activities to "avoid price volatility and ensure stable material supply for EV production by securing upstream resources."
This vertical integration strategy is becoming crucial as geopolitical tensions and supply chain disruptions continue to pose risks to the rapidly growing EV industry. CATL's 30 billion yuan investment in its new resources arm underscores the scale of its ambition to build a resilient and self-sufficient supply chain.
This article is for informational purposes only and does not constitute investment advice.
