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CATL market cap tops US$293 billion as shares surge on mining arm

A new investment unit to manage mining assets signals CATL’s deeper shift beyond EV batteries into energy storage

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CATL’s has gained on expectations the Fujian-based company would step up its expansion into energy storage. Photo: Reuters
Zhang Shidongin Shanghai
Contemporary Amperex Technology (CATL), the world’s largest producer of electric vehicle (EV) batteries, rallied after creating a subsidiary to manage its mining assets, signalling a deeper push into the energy storage business.

Its Shenzhen-listed shares rose 4.4 per cent to 450.14 yuan on Thursday, lifting its market capitalisation above 2 trillion yuan (US$293.4 billion), while its Hong Kong-listed stock jumped 10 per cent to HK$723.

Other energy storage-related stocks on the mainland also gained, as investors bet that the US-Iran conflict would accelerate demand for renewable energy.

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The gains followed an exchange filing that raised expectations the Fujian-based company would step up its expansion into energy storage to offset slowing EV sales in China.

CATL said after the market close on Wednesday that it would establish a 30 billion yuan investment arm to consolidate its mining assets, invest in mineral projects at home and abroad, and secure raw material supplies for its core operations.
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“CATL can position itself at the forefront of the industry through upstream resources to mitigate the impact of rising material costs,” said Zhang Lei, an analyst at Great Wall Securities, who expects the company’s profit to grow by nearly 30 per cent this year.

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