Contemporary Amperex Technology plans to build a battery material recycling facility in the central Chinese province of Hubei with an investment of up to 32 billion yuan ($4.96 billion), the electric-vehicle battery maker said on Tuesday.
China, the world’s biggest car market, has also set standards and policies to promote battery recycling and save materials.
A CATL unit will form a joint venture with Hubei Yihua Chemical Industry to recycle used EV batteries for chemicals such as cobalt and lithium, the company said in a filing.
Last month, CATL said it agreed to acquire Canada’s Millennial Lithium, as it looks to shore up the supply of key ingredients for EV batteries.
The leading EV battery maker in China, CATL’s customers include automakers such as Tesla and Volkswagen.