Global electric vehicle battery maker, Contemporary Amperex Technology Co has announced to pump over 32 billion yuan ($4.96 billion) to build a battery material recycling facility in the central Chinese province of Hubei.
The announcement comes at a time when global demand for electric vehicles has surged amid high fuel prices and growing global clamour to cut down on rising carbon footprints. The announcement, however, faces stiff challenges of securing battery materials for the industry.
At present China is the world’s biggest car market. With the renewed push on EVs, the country will have to work hard to maintain the standards and policies to promote battery recycling and save materials.
As per the plan, the CATL unit will form a joint venture with Hubei Yihua Chemical Industry Co to recycle used EV batteries for chemicals such as cobalt and lithium, the company said in a filing.
Last month, CATL said it had agreed to acquire Canada’s Millennial Lithium Corp, as it looks to shore up the supply of key ingredients for EV batteries. The leading EV battery maker in China, CATL’s list of customers includes a swathe of automakers such as Tesla Inc and Volkswagen AG.