Explosion hits CATL battery precursors plant in China

An explosion has hit a factory operated by battery recycling firm Hunan Brunp Recycling Technology, a subsidiary of major Chinese battery manufacturer Contemporary Amperex Technology (CATL).

Yesterday's accident at the factory in Ningxiang city in central China's Hunan province killed one person and injured six. The factory has a capacity of 15,000 t/yr for battery ternary precursors.

The firm's operations will be little affected by the accident, as it also has a production plant with 65,000 t/yr of capacity for the precursors that is able to meet regular demand from its consumers, market participants said.

The explosion was caused after waste aluminum foil caught fire in a garbage dump, Hunan Brunp said. The company said it will investigate any further potential dangers and ensure safe production in the future.

Hunan Brunp mainly produces ternary precursors for power batteries, using battery scraps from CATL as its main feedstock. Its 80,000 t/yr of ternary precursor output capacity corresponds to 60GWh of battery capacity.

Higher spot demand from the power battery industry in the run-up to the lunar new year holidays in mid-February have bolstered prices for many battery materials. Argus assessed prices for 99.8pc grade cobalt metal at 270-295 yuan/kg ($42.49-44.81/kg) ex-works yesterday, up from Yn265-280/kg on 5 January, with prices for 99.5pc grade lithium carbonate assessed higher at Yn51,000-56,000/t ex-works, up by Yn2,000/t over the same period.