CATL: Plans to invest 32 billion yuan to build the Brunp integrated battery material industrial park

On October 12, CATL issued an announcement stating that in order to adapt to the development trend of the industry, meet the company's power battery production capacity expansion needs, improve the new energy material supply chain, and promote the full life cycle management of new energy batteries, the company plans to invest in the construction of the CATL integrated battery material industrial park project in the Tianjiahe area of ​​Yaojiagang Chemical Park in Yichang City, Hubei Province by its holding subsidiary Guangdong CATL and its holding subsidiaries. The total investment amount of the project will not exceed RMB 32 billion, and the construction period will be 6 years (2022-2027).

The announcement disclosed that the project mainly aims to build an intensive and large-scale production base with the functions of recycling waste battery materials, lithium iron phosphate and ternary precursors, lithium iron phosphate, lithium cobalt oxide and ternary positive electrode materials, graphite, phosphoric acid, etc., and is planned to be implemented by Guangdong Brunp and its holding subsidiaries. Among them, the construction project of raw materials such as phosphoric acid and sulfuric acid in the integrated battery material supporting chemical materials is planned to be constructed in cooperation with Hubei Yihua Chemical Co., Ltd.

The announcement stated that the implementation of this project will help further improve CATL's strategic layout in the lithium-ion new energy industry, give full play to the advantages of industrial synergy, ensure the supply of battery materials for CATL, and promote the goal of full life cycle management of retired power batteries, which is of great significance for controlling costs and improving product competitiveness. The investment and construction of this project will increase CATL's capital expenditure and cash expenditure, but in the long run it will have a positive impact on its business layout and operating performance.

It should be pointed out that positive and negative electrode materials are key materials and important components of power batteries. Their market demand is affected by international and domestic macroeconomic fluctuations, the promotion of downstream new energy vehicles and related industrial policies, and market competition is becoming increasingly fierce. CATL stated that if the market situation changes significantly, it will affect the economic benefits of this project.