(Yicai Global) Aug. 26 -- Contemporary Amperex Technology has dismissed reports that it plans to take a stake in Jinchuan Group International Resources, according to The Paper, which cited an official at the world’s biggest maker of electric car batteries.

Media reports earlier today said CATL was considering to buy a 10 percent stake in the Hong Kong-listed mining giant for more than 1.5 times the market price in order to secure supplies of key battery metals.

Shares of Jinchuan International [HKG: 2362] surged more than 16 percent to close at HKD1.22 (16 US cents), having earlier skyrocketed over 90 percent. The benchmark Hang Seng Index ended down 1.1 percent.

Headquartered in Ningde city, Fujian province, CATL mainly researches, develops, produces and sells new energy vehicle batteries and energy storage systems.

Jinchuan International is a subsidiary of Jinchuan Group, a state-owned enterprise in Gansu province. Based in Jinchang city, Jinchuan Group is the third-largest nickel producer in the world and the third-largest copper producer in China.

Jinchuan International’s main business is to develop and manage overseas mineral resource projects, as well as the trading of nickel, copper, cobalt and other non-ferrous metal raw materials and products. It is one of China’s mainstream NEV metals suppliers, according to public information.

Nickel, cobalt, and manganese (or aluminum) are the main raw materials for ternary lithium battery cathodes. The NEV ternary lithium battery industry has seen the largest increase in cobalt applications in recent years.

Editor: Peter Thomas