CATL Collaborates with Sichuan Province, China's Top Lithium Reserve, on Mining Development

Published 05 Feb.2024 10:16(KST)

CATL (Ningde Times), the world's largest battery manufacturer, is partnering with the Sichuan provincial government to develop mines. The Sichuan region holds the largest lithium reserves in China, accounting for 57% of the national total.

On the 4th, China's Pengpai News reported that CATL signed a strategic cooperation agreement with the Sichuan provincial government regarding lithium mine resource development and the development of new energy storage devices.

[Image source=Reuters Yonhap News]

Previously, in October 2019, CATL established Sichuan CATL, a wholly-owned subsidiary, in the Yibin Economic and Technological Development Zone and made a project investment worth 56 billion yuan (approximately 10.38 trillion KRW) for a battery production plant. The plant has an annual production capacity of 270 gigawatt-hours (GWh) and has already begun partial production. The Yibin plant of Sichuan CATL was recognized as the world's first carbon-neutral battery factory in March 2022 after receiving the 'PAS 2060' carbon neutrality certification from the global certification body SGS.

Despite the overall decline in operating rates in the battery industry in December last year, CATL chose to expand production at Sichuan CATL. At that time, the company approved a power battery production base expansion project, which, upon completion, will increase lithium-ion power battery production capacity to 61 GWh annually.

Sichuan Province, where CATL is strengthening cooperation, is the top region for lithium reserves in China, accounting for 57% of the national total. According to China's Ministry of Natural Resources, nearly 1 million tons of lithium resources have been discovered in Yajiang, Sichuan. This is the largest single pegmatite-type lithium mine found in Asia.

According to the 'Mineral Resources Master Plan (2021?2025)' announced by the Sichuan provincial government in February last year, the total annual lithium ore mining volume in this region is expected to reach 1 million tons by 2025, a 50-fold increase compared to 2020. CATL owns the Snowy Mining lithium mine located in Yajiang County, Sichuan Province, and has begun a development plan worth 6.4 billion KRW.