Chinese battery giant CATL invests with China Molybdenum in Kisanfu copper-cobalt mine in DRC

Chinese battery giant CATL and Luoyang Luanchuan Molybdenum Group Co Ltd have reached a new level of comprehensive strategic cooperation in the field of new energy metal resources. At a signing ceremony, Ningbo Bangpu Times New Energy Co Ltd (Bangpu Times), an indirect holding company of CATL, and China Molybdenum (CMOC) Ltd, a wholly-owned subsidiary of Luoyang Molybdenum Industry Co Ltd, signed a strategic cooperation agreement.

At the same time, Hong Kong Bangpu Times New Energy Co., Ltd., a wholly-owned subsidiary of Bangpu Times, acquired a 25% stake in Hong Kong KFM Holdings Co Ltd, a wholly-owned subsidiary of China Molybdenum Holdings, for a total consideration of $137.5 million. After the transaction is completed, China Molybdenum Holdings and Bangpu Times will hold 75% and 25% of KFM Holdings, respectively, and KFM Holdings will hold 95% of the Kisanfu copper-cobalt mine in DRC.

The KFM copper-cobalt mine is one of the world’s highest grade copper-cobalt mines to be developed. It has 365 Mt of ore resources, containing more than 6.2 Mt of copper metal and more than 3.1 Mt of cobalt metal, which can provide long-term stability and reliability of raw materials for CATL as well as a responsible supply of cobalt. At the same time, the two parties will work together to build a world-class large-scale copper and cobalt producer.

Zeng Yuqun, Chairman of CATL, said: “The lithium battery industry has ushered in the TWh era. The key condition for ensuring high-quality delivery is the stable and compliant supply of raw materials. CATL has long paid close attention to the construction of a responsible cobalt supply chain. Luoyang Molybdenum follows international standards. The ESG standard is a leader in the supply of battery metals and electric vehicle raw materials. This time the two parties will work together to give full play to their respective advantages 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 realisation of carbon neutrality.”

Sun Ruiwen, President of Luoyang Molybdenum, said: “Based on the extremely high standards and good reputation in terms of sustainable development, our products have long been highly recognised by downstream precursors, cathode materials, battery manufacturers and vehicle manufacturers. CATL as a leading global battery company plays a pivotal role in the global new energy industry chain. We are very pleased to reach this strategic cooperation. Both parties have their own layouts in key resources. We will take this as an opportunity to further develop further our comprehensive cooperation.”