Gasgoo Munich- On April 15, CATL announced that its board has approved a proposal to establish a wholly-owned subsidiary. The new entity, provisionally named Time Resource Group (Xiamen) Co., Ltd., will have a registered capital of 30 billion yuan.According to the filing, Time Resource Group will serve as CATL's specialized platform for investment, operation, and management in the new energy minerals sector.Image Source: CATLIts business scope will span mineral resource exploration, non-coal mining, and geological exploration of metal and non-metal resources. It also covers mineral processing and washing, manufacturing and sales of mining machinery, and R&D in resource recycling. Additionally, it focuses on new material technologies. This effectively forms a complete mining chain from exploration to processing.Regarding the strategic rationale, CATL stated it has gradually deployed resources across lithium, nickel, phosphorus, and other critical minerals. This aims to secure a stable upstream supply of raw materials. Building on this foundation, the establishment of Time Resource Group aims to extend further into the upstream sector. It seeks to construct a competitive advantage through vertical integration.The platform will align with CATL's battery industry layout and demand, integrating existing mining assets while actively expanding into high-quality domestic and overseas mineral projects. This move is designed to safeguard the raw material supply for its core business and secure the industrial chain.The announcement noted that this investment represents a significant move by CATL. It aims to reinforce the industrial chain layout around its core business. This will help enhance supply chain security and core competitiveness.Image Source: CATLThe filing also flagged potential risks associated with the investment. These include external factors such as macroeconomic fluctuations, policy shifts in the downstream new energy sector, commodity price volatility, and geopolitical conflicts. Additionally, the company cited resource and operational risks, such as delays in acquiring high-quality mineral assets or project development costs exceeding expectations. Finally, it highlighted internal management risks stemming from the new entity, including team building, internal controls, and cross-regional operational management.Additionally, CATL released a report on the same day stating that for the first quarter of 2026, operating revenue reached 129.131 billion yuan, up 52.45% year-on-year. Net profit stood at 20.738 billion yuan, a 48.52% increase. After deducting non-recurring items, net profit came to 18.093 billion yuan, rising 52.95%. Basic earnings per share were 4.58 yuan, up 44.03%.
