Tesla’s battery supplier, Contemporary Amperex Technology (CATL), announced a new $5 billion battery cell facility in Hubei, China.
CATL is already expanding their battery capacity across the globe. The company is looking to expand specifically in China to help support Tesla’s growing sales in the region. However, this move into battery recycling is a new one for the company.
According to a report in Reuters, the company will form a joint venture with Hubei Yihau Chemical, which manufacturers and distributes chemical products. The joint venture will allow Hubei Yihaua Chemical to assist CATL in the processes of recycling. Most importantly, they will enable the company to recycle lithium and cobalt.
This move to battery recycling is part of a broader expansion by CATL. Last month, the company purchased Canadian-owned Millennial Lithium Corp, which owns numerous lithium mines.
In addition, the company raised $9 billion in a share sale to help fund the production of several more battery cell factories in China.
The announcement did not include when the new battery recycling facility would open or any timelines for the project.