Media365
Contemporary Amperex Technology Ltd (CATL), China’s electric vehicle (EV) battery king, plans to earmark 30 billion yuan (US$4.4 billion) to establish a subsidiary to manage and expand mining assets, after the global energy shock paved the way for a quicker entry into the world’s automotive and energy storage system (ESS) markets.
The investment arm, in line with CATL’s long-term growth strategy, 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, according to a filing to the Shenzhen Stock Exchange.
“The battery behemoth has sniffed out huge growth opportunities looming ahead,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “It is making big investments into upstream mining resources to support its potential high growth.”
ESS comprises batteries alongside battery management, power conversion and control systems that store excess renewable energy, provide backup power during outages, and help stabilise electricity grids.
CATL, based in Ningde, east China’s Fujian province, reported a net profit of 20.74 billion yuan in the three months to March, up 48.5 per cent from the previous quarter and beating a Bloomberg consensus estimate of 17.6 billion yuan.
The Middle East crisis has propelled Brent crude more than 30 per cent higher to hover around US$100, prompting car buyers to shift from petrol vehicles to EVs while renewable energy projects mushroomed worldwide.
