Shares of CATL jumped more than 10% after the battery giant posted earnings that beat expectations and unveiled a new mining arm with Rmb30bn ($4.4bn) of registered capital. The move signals the company’s drive to lock down lithium, nickel and other critical minerals as geopolitical friction pushes China to tighten its supply chain.

The subsidiary, Shidai Resources Group, will hunt for high‑quality projects both at home and overseas, aiming to shore up raw‑material supplies and blunt market volatility. Analysts at Bernstein said the consolidation reflects confidence in robust demand and recent turbulence in global metal prices. CATL’s first‑quarter net profit rose 48% to Rmb20.7bn, while revenue surged 52% to Rmb129.1bn.

Even as Chinese EV sales show signs of slowing, CATL’s earnings benefited from strong demand for energy‑storage systems, including installations for AI data centres. The firm projects battery‑capacity growth of 20‑30% annually over the next five years, reinforcing its upstream push. The new subsidiary cements CATL’s position as a vertically integrated player in a race for critical minerals.

The expansion aligns with Beijing’s broader push to subsidise mineral exploration and reduce reliance on foreign sources, echoing President Xi’s economic‑security agenda. With the United States intensifying its own domestic mining drive, CATL’s Shidai Resources Group positions the company to navigate trade tensions while securing the inputs essential for EVs, batteries and defence applications.