China’s battery champion pushes deeper into mining - FT中文网
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宁德时代

China’s battery champion pushes deeper into mining

CATL puts $4.4bn into new subsidiary to strengthen supply chain self-sufficiency
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{"text":[[{"start":7.78,"text":"CATL is boosting investment in minerals exploration as the world’s biggest battery maker seeks to strengthen self-sufficiency in its supply chain amid heightened geopolitical tensions."}],[{"start":21.02,"text":"Its Hong Kong-listed shares surged more than 10 per cent on Thursday after the Chinese company posted higher than expected earnings and said it had established a mining subsidiary with registered capital of Rmb30bn ($4.4bn)."}],[{"start":37.95,"text":"CATL, which was founded in 2011, has spent billions of dollars over the years to secure access to key resources including lithium and nickel, running the investments under an internal division."}],[{"start":52.400000000000006,"text":"The establishment of a dedicated subsidiary signals an intention to accelerate resource exploration efforts in China and abroad."}],[{"start":61.650000000000006,"text":"The unit, Shidai Resources Group, “will actively expand into high-quality domestic and international mineral resource projects”, said CATL, adding that investments would “ensure the raw material supplies and supply chain security”."}],[{"start":77.53,"text":"The move comes as China faces intensifying competition from the US for access to materials needed for advanced technologies from electric vehicles and their batteries to missiles and semiconductors."}],[{"start":91.43,"text":"Since returning to the White House, US President Donald Trump has put domestic mining and US access to critical minerals at the top of his agenda."}],[{"start":101.77000000000001,"text":"At the same time, China’s central and provincial governments have moved to expand access and boost subsidies for mineral exploration, supporting President Xi Jinping’s ambition for greater economic security."}],[{"start":115.20000000000002,"text":"Analysts at Bernstein said CATL’s decision to consolidate its mining presence was based on expectations of robust demand for resources and instability in global metal markets."}],[{"start":129.70000000000002,"text":"“The establishment of Shidai Resources Group further strengthens CATL’s upstream positioning, mitigating resource volatility and supporting long-term growth,” said analysts in a research note."}],[{"start":144.09000000000003,"text":"The company reported first-quarter net profit of Rmb20.7bn on Wednesday, up 48 per cent from the same period a year earlier and well ahead of analyst forecasts. Revenue in the first three months of the year jumped 52 per cent to Rmb129.1bn."}],[{"start":164.99000000000004,"text":"Despite signs of slowing growth in Chinese EV demand in recent months — denting a core driver of CATL’s business — the company’s earnings have been supported by strong demand in energy storage systems, including for AI data centres."}],[{"start":183.22000000000003,"text":"CATL continues to tout a robust outlook for the battery industry, forecasting annual growth of 20-30 per cent in capacity over the next five years."}],[{"start":195.86,"text":"Additional reporting by Tina Hu in Beijing"}],[{"start":207.46000000000004,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776387767_4770.mp3"}

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