CATL and CMOC agree on strategic cooperation for joint development of world-class copper-cobalt mine

On April 10, 2021, (CATL) and China Molybdenum Co., Ltd. (CMOC) signed an agreement on comprehensive strategic cooperation in the field of new energy metal resources. 

At the signing ceremony, Ningbo Brunp Contemporary Amperex Co., Ltd., a joint venture of CATL, signed the strategic cooperation agreement with CMOC Limited, a subsidiary of CMOC. At the same time, Hong Kong Brunp and Co., Limited, a subsidiary of Ningbo Brunp Contemporary Amperex Co., Ltd., purchased a 25% stake in KFM Holding Limited (KFM Holdings), a wholly-owned subsidiary of CMOC, at a cost of 137.5 million U.S. dollars. After the deal, CMOC Limited and Ningbo Brunp Contemporary Amperex Co., Ltd. would respectively hold 75% and 25% of KFM Holdings, and KFM Holdings owns 95% of Kisanfu copper-cobalt Mine in Democratic Republic of Congo. 

As one of the world’s largest undeveloped sources of cobalt of the highest grade, Kisanfu Copper Cobalt Mine boasts 365 million tons of ore resources, contains more than 6.2 million tons of copper metals and more than 3.1 million tons of cobalt metals. This can provide CATL with a steady, reliable and clean supply of cobalt raw material in the long run. Both parties will also work together to develop as a world-class copper cobalt manufacturer. 

Robin Zeng, founder and chairman of CATL said, "The lithium-ion battery industry has stepped into the TWh era. The key condition for ensuring high-quality delivery is the stable and compliant supply of raw materials. CATL always pays close attention to the construction of a responsible cobalt supply chain. CMOC follows international ESG standards and takes a leading position in the field of battery metal and EV raw material supply. Through this cooperation, both companies will join forces to bring their respective advantages into play in the field of new energy metal resources such as lithium, cobalt, nickel, and copper, and contribute to the development of the new energy vehicle industry and to the realization of an emission peak and carbon neutrality.”

Sun Ruiwen, president of CMOC said, "Based on the high standard and good reputation in terms of sustainable development, our products have long been highly recognized from downstream precursors, cathode material providers, over battery manufacturer to OEMs (original equipment manufacturers). As the world-leading EV battery provider, CATL plays a vital role in the global new energy industry chain, and we are very pleased to reach this strategic cooperation. Both parties have their own layouts in key resources, and we will take this as an opportunity to further develop comprehensive cooperation.”