CATL buys 20,000 tons of cathode copper in $320 million pact

Contemporary Amperex Technology approved a contract on Sept. 30, 2026, to purchase up to $320 million worth of cathode copper through 2028 to secure anode foil feedstock.

The agreement secures 20,000 metric tons of cathode copper — refined slabs of at least 99.99% purity — over two calendar years. The volume carries a 10% delivery allowance at the seller's option.

Procurement spending cannot exceed $150 million in 2027 and $170 million in 2028, according to the regulatory filing. The metal feeds foil lines that build electric vehicle battery cells.

Hong Kong Contemporary Amperex Technology Limited, a wholly owned offshore unit of the Chinese battery manufacturer, acts as the buyer. The unit signed the framework agreement directly with Hong Kong An Sheng Mining Investment Co., Limited.

The transaction qualifies as a connected trade under Shenzhen Stock Exchange listing rules. CATL Chairman Robin Zeng holds an indirect 29.4% equity stake in Hong Kong An Sheng through Hong Kong Ruihua Investment.

Zeng also serves as a non-executive director at the mining entity. Because of his personal holding, Zeng abstained from voting during the board deliberations on Wednesday in Ningde.

Eight directors approved the commercial framework without objection during the 20th meeting of CATL's fourth board session, the company said in an exchange notice. The deal does not require general shareholder approval.

Hong Kong CATL will disburse a $100 million advance payment to Hong Kong An Sheng in December 2026. The prepayment guarantees delivery slots before commercial shipments begin.

The advance accrues interest at the Secured Overnight Financing Rate plus 2.00% per year. CATL will deduct both principal and interest charges from subsequent physical cargo invoices across the delivery period.

The SOFR benchmark — the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York — ties the prepayment cost to prevailing US dollar liquidity rates.

Shipments under the contract begin Jan. 1, 2027, and run through Dec. 31, 2028. Deliveries will move through designated international trading ports to feed downstream processing facilities.

Cathode copper serves as the primary raw material for battery-grade copper foil. The ultra-thin foil functions as the negative electrode current collector, holding active graphite material inside pouch, prismatic and cylindrical cells.

Battery makers increasingly shift to thinner foil gauges — down to 4.5 micrometers from eight micrometers — to boost gravimetric energy density. Thinner foils demand higher-purity cathode feedstocks to avoid micro-tears during continuous coating runs.

Each gigawatt-hour of lithium-ion cell production consumes roughly 600 to 800 metric tons of copper foil. As cell manufacturers expand global capacity, raw metal procurement increasingly shapes overall pack cost structures.

Global copper prices have swung sharply during recent commodity cycles on mining disruptions in South America and Africa. Long-term volume agreements help battery manufacturers control procurement spreads and stabilize metal inventories.

Cell makers typically buy refined cathode copper directly before consigning the metal to precision foil rolling mills. That tolling structure shields battery companies from processing premiums charged by intermediate material fabricators.

The 20,000 metric tons secured under the contract can support roughly 25 to 30 gigawatt-hours of battery cell output. That volume supports CATL's expanding manufacturing network across mainland China and Europe.

CATL produced more than 300 gigawatt-hours of battery cells across passenger vehicle and grid-storage segments last year, driving steady consumption of negative electrode metals across its assembly plants.

The company has pursued direct investments and supply arrangements across key battery metals. CATL holds a 24.6% equity stake in CMOC Group, which operates major copper and cobalt mines in the Democratic Republic of Congo.

Rival battery makers in South Korea and Japan, including LG Energy Solution and Panasonic Energy, buy refined copper indirectly through commercial foil manufacturers. CATL's contract reflects direct upstream intervention.

The regulatory filing does not state the origin mine, the country of extraction, or the specific smelting facility supplying the metal. Hong Kong An Sheng has not published details regarding its underlying mineral reserves.

The company published the transaction details under document code 2026-091 on the Shenzhen Stock Exchange and issued parallel overseas regulatory notices on the Hong Kong stock exchange.

CATL will account for the transactions under annual connected-party procurement caps and register execution progress with mainland regulators. Physical customs clearances and settlement reports will document shipments throughout the 2027 calendar year.