In 2025, CATL has continued expanding its upstream investments. Following its capital increase and controlling stake in subsidiary of Fulin Precision, the company has now set its sights on another long-term partner — Tianhua New Energy.
On October 31, Tianhua New Energy announced that its actual controllers, Mr. Pei Zhenhua and Ms. Rong Jianfen, had signed a Share Transfer Agreement with CATL. Under the agreement, they plan to transfer a total of 108 million unrestricted tradable shares to CATL via negotiated transfer, accounting for 12.95% of the company’s total share capital. The transfer price is set at RMB 24.49 per share, for a total consideration of RMB 2.635 billion.
As of market close on October 31, Tianhua New Energy’s share price was RMB 30.42 per share, meaning the transfer price reflects a 19% discount to the closing price.
CATL already held 0.59% of Tianhua New Energy’s shares, ranking eighth among its top ten shareholders. Upon completion of this transaction, CATL will hold a total 13.54% equity stake, becoming the company’s second-largest shareholder.
Tianhua New Energy stated that bringing in a strategic investor through an agreed share transfer will further optimize its shareholder structure, and the transaction will not lead to any change in the company’s actual controller or controlling shareholder.
Notably, CATL and Tianhua New Energy already have mutual equity ties. Tianhua’s actual controller, Pei Zhenhua, holds 284 million shares (6.23%) of CATL through Ningbo United Innovation New Energy Investment Partnership (Limited Partnership), making him CATL’s fourth-largest shareholder.
In its equity change report, CATL explained that the transaction aims to deepen cooperation between the two companies, which operate along the same supply chain with strong business synergy potential. The purchase will be fully funded with self-owned or self-raised funds.
Founded in 1997 and listed on the Shenzhen Growth Enterprise Market in 2014, Tianhua New Energy’s business covers three major segments: new energy lithium materials, anti-static and ultra-clean technology products, and medical devices. Its core business lies in battery-grade lithium hydroxide and lithium carbonate production.
Tianhua New Energy’s main customers include CATL and its affiliates, LG Chem, SK On, Samsung SDI, Ronbay Technology, and Bamo Technology. Among them, CATL is its core client.
The company’s existing production capacity includes multiple projects such as the Yibin Tianyi Lithium Industry (70,000 tpa lithium hydroxide), Sichuan Tianhua (60,000 tpa lithium hydroxide), Fengxin Xindai (100,000 tpa lithium carbonate, Phase I at 30,000 tpa already operational), and Huayi Environmental (900,000 tpa lithium materials concentration project).
In terms of lithium resource development, Tianhua New Energy has established a global presence through its subsidiary Suzhou Tianhua Times, with projects across Australia, the DRC, Nigeria, and Brazil. In September 2025, Tianhua New Energy acquired a 75% stake in Tianhua Times, while CATL retained 25%, enabling joint ownership of upstream lithium resources.
According to Tianhua New Energy, this transaction aims to consolidate the controller’s lithium resource investments into the listed company and eliminate potential competition within the same industry.
For Tianhua New Energy, bringing CATL in as a major shareholder strengthens their strategic alignment — ensuring steady orders, technical cooperation, and financial support, all serving as a stabilizer for future growth.
From CATL’s perspective, stable and controllable upstream material supply has become a key competitive advantage. Investing in a listed lithium salt producer represents not just a financial move but also a critical extension of CATL’s vertical integration strategy, deepening collaboration along the supply chain and securing raw materials for the next phase of capacity expansion.
In 2025, CATL is in the midst of another expansion cycle, ramping up production capacity across multiple bases — including Jining (Shandong), Ruiqing (Guangdong), Yichun (Jiangxi), Xiamen (Fujian), Qinghai, and Ningde (Fujian). The Jining base alone is expected to add over 100 GWh of energy storage capacity by 2026. New overseas bases in Hungary, Spain, and Indonesia are also progressing rapidly.
Looking ahead, 2026 is expected to mark a major capacity release year for CATL. The company’s recently signed long-term material supply contracts and strategic equity partnerships will provide robust and secure upstream support for its global capacity expansion and next-generation technology development.
Source：https://mp.weixin.qq.com/s/aQj8zuHwo9cpcQ0aaImCeA