(Nov 7): Contemporary Amperex Technology Co, Ltd (CATL) has been told how much it should pay for the rights to its key lithium mine in China, another sign of progress in the battery maker’s bid to restart the operation that had been halted since August.
The Chinese company is required to pay 247 million yuan (US$35 million, or RM146.17 million) for the lithium mining rights at its Jianxiawo project in Yichun city, according to the website of Jiangxi province’s Department of Natural Resources, which shows a valuation report submitted by a government-appointed asset appraisal company.
The levy is necessary for CATL to get its mining licence approved and is a precondition for Jianxiawo to restart, analysts at UBS Group said in a note.
CATL didn’t immediately respond to a request for comment.
Production at the mine has been suspended since CATL failed to get an extension on a permit that expired Aug 9, creating uncertainty in the lithium market at a time when Chinese authorities are scrutinising supply chains for the battery ingredient. CATL is the world’s biggest battery supplier for electric vehicles, with Jianxiawo forecast to account for about 3% of global lithium production.
The mining right transferral from the government was evaluated in 2022 based on kaolinite deposits, without considering other minerals including lithium, according to the valuation report on Jianxiawo dated Nov 6. Previously, eight mines in the region were asked to submit reports on reserves, following an audit that uncovered administrative shortcomings.
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CATL shares fell as much as 1.5% in Shenzhen on Friday, tracking broader weakness across Asian equity markets.
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