CATL to launch magnesium alloy joint venture with three companies

Shanghai (Gasgoo)- Chinese EV power battery giant CATL signed a framework agreement on August 26 with three automotive material and component suppliers to build a joint venture focusing on magnesium alloy material, CATL announced on August 7.

(Photo source: CATL's WeChat account)

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 the Ningde-based battery manufacturer.

There are great prospects for the application of magnesium alloy in such fields as automobile, aerospace technology, electronic communications and medical care, said CATL. The whole process from raw material to the terminal application contains quite a new links including smelting, fusion, casting and molding, and should be jointly developed by multiple participants, particularly for some high-end products and parts.

Located in Shouning County, 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.

CATL announced its first-half revenue surged 116.5% from the previous year to roughly RMB20.264 billion, and the semi-annual net profit attributable to shareholders of the public company reached around RMB2.102 billion with an impressive year-on-year jump of 130.79%.

The revenue came from CATL's three major business sectors—power battery system, energy storage system and lithium battery material—reached RMB16.892 billion (+135.01%), RMB240 million (+369.55%) and RMB2.309 billion (+32.14%) respectively.