Research Report

CATL [300750.CH; HOLD; TP: Rmb560.0] - Upstream resources competition heating up


■ On 28 Sep 2021, Canada's Millennial Lithium Corp announced that CATL had agreed

to acquire 100% of its issued shares for a total cash consideration of about CA$377m

(equivalent to US$297m).

■ CATL has made quite a few other investments in upstream mining resources (cobalt,

lithium, nickel, etc.) to provides it with stable supply, especially given its aggressive

expansion plan, and giving it a cost advantage over its peers.

■ CATL’s snapping up lithium reserves again indicates the importance of the upstream

lithium mining resources for the EV battery value chain.