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Unit of Chinese Battery Maker CATL Wins Lithium Mine Rights

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


A sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL)
A sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL) is seen on its building in Ningde, Fujian province. File photo: Reuters.

 

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

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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