CATL and its Brunp Recycling subsidiary are setting up JV for cathode materials
In a move which will enable Chinese battery manufacturer CATL to expand its raw material supply, a joint venture for cathode materials is being set up by the company with its subsidiary Brunp Recycling. CATL holds 28.5% of Brunp Recycling.
The joint venture will be called Ningbo Brunp CATL New Energy, and will be based in Ningbo in Zhejiang province.
According to the information shared by CATL, the share capital of Ningbo Brunp CATL New Energy will be 3.6 billion yuan (approximately EUR 457 million). Both CATL and Brunp Recycling will provide the share capital of the joint venture in full, though the exact distribution has not been revealed.
The key objective of Ningbo Brunp CATL New Energy will be research and development (R&D). In addition, the joint venture will also focus on the sale of battery materials as well as other “relevant materials” like cobalt and nickel. There is presently no timeline revealed by CATL about when the first products of the joint venture will be showcased.
CATL’s intent behind setting up the joint venture with its Brunp Recycling subsidiary is to consolidate the supply of cathode materials. Against the backdrop of the joint venture move, CATL Europe Co-President Matthias Zentgraf highlighted the company’s sustainability strategy, and said: “In line with the growing interest in e-mobility, we continue to strive to develop new and improved technologies that meet the needs of automotive manufacturers.”