Chinese EV battery firm CATL to shore up cobalt supply with US$137.5 million stake in China Moly mine
- CATL unit Ningbo Brunp to take 25 per cent stake in China Molybdenum unit KFM Holding
- Move marks battery maker’s latest investment in mineral supply
Chinese battery maker Contemporary Amperex Technology (CATL) said on Sunday its subsidiary would take a stake in China Molybdenum’s Kisanfu copper-cobalt mine in the Democratic Republic of Congo (DRC) for US$137.5 million.
Under a strategic partnership agreement, Ningbo Brunp CATL New Energy will take 25 per cent in Moly unit KFM Holding Limited, which holds 95 per cent of the Kisanfu mine, CATL said in a statement. CATL has already invested in companies mining other battery metals such as lithium and nickel in a bid to secure supply.
Moly, which bought its stake in Kisanfu in December, said in a separate statement it and CATL “will fund the project capex in proportion to their ownership in KFM to jointly build a world-class copper and cobalt producer”.
Moly will retain 75 per cent of KFM and future production will also be split 75:25. The partnership sees Moly become “a long-term cobalt supplier to the world’s largest power battery manufacturer”, it added.
Kisanfu, located near Moly’s giant Tenke Fungurume copper-cobalt mine in the DRC, the world’s biggest cobalt-producing country, contains an estimated 3.1 million tonnes of cobalt metal as well as 6.2 million tonnes of copper.