CATL's Shares Rise After USD2.1 Billion Deal to Make Mid-Sized Batteries With TDK's Unit
Zhang Yushuo
DATE:  Apr 29 2021
/ SOURCE:  Yicai
CATL's Shares Rise After USD2.1 Billion Deal to Make Mid-Sized Batteries With TDK's Unit CATL's Shares Rise After USD2.1 Billion Deal to Make Mid-Sized Batteries With TDK's Unit

(Yicai Global) April 29 -- Shares of Contemporary Amperex Technology surged after the world’s largest battery producer said it will team up with a lithium battery maker owned by Japan's TDK to manufacture mid-sized batteries used in residential energy storage systems and electric bikes.

CATL's stock price [SHE: 300750] jumped as much as 3.8 percent to CNY381.09 (USD58.90) intraday today. But the shares are still about 6 percent down from early January.

The Chinese firm and Amperex Technology will invest CNY14 billion (USD2.1 billion) to set up two joint ventures to tap into the sector of medium-sized batteries, the Ningde-based company said in a statement yesterday.

Such big moves were expected from the Chinese battery giant. On April 27, CATL pledged to invest no more than CNY19 billion (USD2.9 billion) in listed firms in the field to strengthen cooperation.

CATL and ATL will invest CNY12 billion in the first JV for battery cells. CATL will have a 70 percent stake in it. The JV's registered capital is CNY5 billion (USD772.8 million).

The second JV, which should make battery packs, will require CNY2 billion in total investment. It will have CNY1 billion in registered capital. CATL will hold a 30 percent stake in the JV and the partner, which is registered in Hong Kong, the remainder.

CATL is exploring new opportunities as lithium-ion batteries are used in a widening range of products, it added. The pair has agreed on licensing.

In 2020, CATL boosted its net profit by 22 percent to CNY5.6 billion (USD862.5 million) from a year ago amid the new energy vehicle boom, according to its earnings report.

Editor: Emmi Laine, Xiao Yi

 

Follow Yicai Global on
Keywords:   CATL,ATL,investment,battery