China’s Contemporary Amperex Technology Ltd (CATL) said on Thursday a subsidiary had won the rights to a lithium mine in the country’s southern Jiangxi province for 865 million yuan ($134.76 million).
The mine will supply a new lithium battery production and manufacturing base in Yichun, which CATL agreed to build with the local government last year, the company said in a WeChat post.
Shares in CATL, the world’s biggest maker of lithium-ion batteries for electric vehicles, on Wednesday slumped 7.6% to nearly 11-month lows as soaring material costs took their toll.
The company’s market capitalisation stood at 948.7 billion yuan after Wednesday’s close, the first time in nearly a year it was less than 1 trillion yuan.
CATL, one of China’s most valuable companies, is expected to report disappointing first-quarter results next week.
- Reuters, with additional editing by George Russell