CATL Earmarks $4.4B to Secure Supply of Critical Minerals
On 15 April 2026, the world’s largest battery maker, Contemporary Amperex Technology Company Limited (CATL), issued a statement and indicated its plan to secure its supply of #CriticalMinerals. The plan involves the creation of a new wholly-owned subsidiary with a registered capital of RMB 30 billion ($4.4B). The subsidiary will be responsible for mineral exploration and processing as well as the trade of related chemicals.
In a related move, CATL (SZSE: 300750; HKSE: 3750) recently recruited the former Chairman of Zijing Mining, China’s largest mining outfit by market cap, on an advisory capacity. It is thus clear that the strategy of CATL is to become vertically integrated by moving upstream, since it already controls the downstream side of battery-making.
Previously, CATL preferred to be a minor partner on a mining project to ensure long-term offtake and stable feedstock. As a case in point, it partnered with China Molybdenum (CMOC) on the Kisanfu copper-cobalt mine in the Democratic Republic of the Congo (DRC) with 23.75% stake.
In February 2026, CATL reopened its lithium lepidolite mine and refinery in Jianxiaowo, located about 100 kilometers east of the city of Nanchang, the capital of Jiangxi province. The project is a JV with Lopal Tech (SHSE: 603906). CATL plans to ramp up production to 3,000 tonnes of lithium carbonate per month.
To finance its expansion into mining, CATL is contemplating selling shares to the tune of USD 5 billion on the Hong Kong Stock Exchange. However, an unnamed company source stated that various funding options are being considered, but no final decision has been reached yet. Nevertheless, the rumor caused CATL shares to fall by 6.2% on 15 April 2026.
Last month, CATL released its Annual Report 2025, demonstrating robust growth. Revenue rose to RMB 424 billion with net profit jumping by 42% to RMB 72 billion. Thus, CATL remains the uncontested world leader in Energy Storage Systems (#ESS) — used not just in electric vehicles, but also electric ships, and data centers and power generation plants — has cornered a global market share of 42%.
The report also revealed that the company is working on sodium-ion batteries as a cheaper alternative to lithium-ion ones. In partnership with auto maker Stellantis, CATL is building a lithium iron phosphate (#LFP) gigafactory in Zaragoza, Spain, with operationalization expected by the end of 2026. Its largest factor — designed for 100 GWh capacity — in Debrecen, Hungary, has entered the trial production phase at the beginning of 2026.