CATL to set up cathode material joint venture with subsidiary

Shanghai (Gasgoo)- Chinese battery provider CATL and its subsidiary Guangdong Brunp Recycling Technology Co., Ltd. (Brunp Recycling) plan to build a joint venture focusing on cathode materials, the battery manufacturer announced on September 2.

The joint venture, dubbed Lingbo Brunp CATL New Energy Co.,Ltd, involves a total registered capital of RMB3.6 billion, of which RMB1.764 billion and RMB1.836 billion were subscribed by CATL and Brunp Recycling respectively, according to the announcement. All capital will come from the parent companies' own funds.

Registered in Ningbo, Zhejiang Province, the joint venture features a business scope covering the investment in new energy and new material industries, sale of battery materials and relevant materials like nickel and cobalt as well as the R&D, consultation and transfer of related technologies.

CATL said the latest investment accords with its holistic development strategy and will help itself consolidate the supply of cathode materials.

The Ningde-based battery giant holds 28.57% stake in Brunp Recycling, which works on manufacturing, processing and selling battery materials, according to the company information search platform TianYanCha. Its businesses also include the development and transfer of battery recycling technologies as well as the sale of products and accessories made of nickel, cobalt, copper, cadmium and other metals.

(Photo source: CATL)

CATL is strengthening the investment in battery materials with its business expansion. In late August, it signed a framework agreement with three automotive material and component suppliers to build a joint venture focusing on magnesium alloy material.

Aside from CATL, the other three shareholders are Dongguan Eontec Co., Ltd, Sanxiang Advanced Materials Co.,Ltd and Jiangsu Vansun Group. The joint venture is to involve a total investment of RMB2 billion, of which 25% capital will be subscribed by CATL.

Located in Shouning County of Ningde, which boasts abundant water, electricity resources and magnesium reserves, the joint venture is designed to be a first-class magnesium alloy manufacturer, making use of four parent companies' industrial experience and expertise and Ningde's local advantage in new energy vehicle industry and relevant supports policies and facilities.