Image source: https://unsplash.com/photos/a-large-rocky-mountain-6LNv5BmYuvI

Contemporary Amperex Technology (CATL), one of the world’s largest battery manufacturers, is stepping further into the mining sector with plans to invest approximately US$4.4 billion in a new subsidiary focused on securing key raw materials for battery production.

The company’s mining arm will be responsible for activities ranging from mineral exploration to processing and the sale of chemical products. It will also bring together CATL’s existing resource interests while looking for new opportunities both in China and overseas.

Rising Metal Prices Push Manufacturers Upstream

The timing of the move is closely tied to the tightening supply of battery metals. Lithium prices have surged over the past year, and nickel and cobalt markets have also come under strain due to export policies in major producing countries.

For battery makers, this has translated into higher costs and greater supply uncertainty. CATL’s response is to take a more direct role in sourcing materials, rather than relying as heavily on external suppliers.

This shift highlights manufacturers’ growing investment in mining assets to secure long-term access to critical inputs.

Building on Existing Lithium Assets

CATL is not starting from scratch. The company already owns lithium assets in China, including the Jianxiawo lepidolite mine in Jiangxi province. That operation has been inactive since last year due to permitting issues, offering a reminder that mining comes with its own set of challenges.

Even so, CATL has continued to increase its exposure to upstream materials, adding stakes and supply links across lithium, nickel and other battery-related resources. The new subsidiary is expected to give these efforts more structure and direction.

Mining Becomes a Strategic Priority

The investment marks a clear change in how CATL sees its role in the supply chain. Control over raw materials is becoming just as important as battery technology, particularly as demand continues to grow.

Electric vehicles remain a major driver, but they are no longer the only one. Energy storage systems are expanding quickly, adding another layer of demand for the same group of minerals. As a result, competition for quality deposits is intensifying.

Strong Earnings Back Expansion Plans

CATL’s recent financial performance supports its mining expansion plans. The company reported strong results for 2025, with net profit of approximately US$10 billion, a 42% increase from the previous year.

In the first two months of 2026, its share of the global EV battery market rose to 42.1%, while battery deliveries increased 13.7% year-on-year. These results support further investment in its mining activities.

Bringing in Mining Experience

To support its expansion, CATL has turned to Chen Jinghe, a veteran of the resource sector who helped build Zijin Mining into a major global player, as an advisor. His involvement suggests the company is serious about navigating the technical and operational demands of mining.

A New Dynamic for the Mining Industry

CATL’s push upstream is part of a trend reshaping the mining sector. Battery and automotive companies are no longer just customers. They are becoming investors and, in some cases, competitors for mineral assets.

This shift has the potential to change how projects are funded and developed, particularly for deposits linked to the energy transition. As demand for battery metals continues to grow, the roles of mining companies and manufacturers are becoming increasingly intertwined.