The world’s largest electric vehicle battery manufacturer is rethinking its strategy. CATL believes that mineral processing is no longer the industry’s biggest challenge. Instead, the company sees mining as the primary bottleneck and is responding by building its own mining division and recruiting one of China’s most respected mining executives as an advisor.
In a recent interview, Jiang Li, Vice President of Contemporary Amperex Technology Co. Limited (CATL), made the company’s position clear. According to him, the key constraint lies in extracting minerals from the ground rather than refining them. CATL aims to strengthen its competitive position by expanding its presence in the upstream segment of the battery supply chain.
For years, the prevailing view in the industry was different. China controls the majority of the world’s battery metal refining capacity, and companies such as Ford have repeatedly argued that refining capacity, rather than mining, represented the greatest supply-chain constraint. However, volatile commodity prices and growing concerns over raw material security have prompted battery manufacturers to look further upstream—directly to the mines.
Despite China’s industrial strength, the country remains heavily dependent on imported mineral ores. To reduce that vulnerability, CATL is establishing its own mining division. The new business will be advised by Chen Jinghe, founder of Zijin Mining, China’s largest mining company.
Jiang Li acknowledged that technological innovation could ease critical mineral shortages over the medium and long term. However, market conditions are evolving too rapidly to wait for future breakthroughs, making secure mineral supply an immediate priority.
CATL already owns mining assets in China and overseas, covering lithium, phosphate, and cobalt resources. Nevertheless, operations at one of its major lithium mines in Jiangxi Province have experienced disruptions since August of last year, contributing to sharp swings in global lithium prices.
At the same time, the company is pursuing a complementary strategy by accelerating the development of sodium-ion batteries. Sodium is widely available around the world and is far less vulnerable to supply shortages than lithium. As Jiang Li explained, if lithium prices surge again, CATL can simply increase production of sodium-ion batteries.
The world’s largest battery manufacturer is no longer relying solely on downstream processing capabilities. By investing in mining operations and alternative battery chemistries simultaneously, CATL is building a dual strategy designed to reduce exposure to future raw material shortages.
Source: MINING.COM
Image: CATL
