CATL pays $137.5 million stake in DRC cobalt mine

Contemporary Amperex Technology or CATL,China’s battery maker, reported its branch would take 25% share in China Molybdenum’s Kisanfu copper-cobalt mine in the DRC for an amount of $137.5 million.

As cobalt prices have rocketed up more than 50% this year, the satke gives CATL access to a large undeveloped source of cobalt, which it plans to use in electric vehicle batteries. CATL already owns companies mining other battery metals such as lithium and nickel.

CATL, together with China Molybdenum, is expected to fund the project capex in proportion to their ownership in KFM to jointly build a top-class copper and cobalt producer.

Kisanfu copper-cobalt mine contains a probable 3.1 million tons of cobalt metal as well as 6.2 million tons of copper. With the DRC Government having a 5% stake, China Molybdenum’s share in Kisanfu will be 71.25% and CATL’s 23.75%.