CMOC and CATL Strengthen Ties, Raise Transaction Caps Amid KFM Expansion and Cobalt Policy Changes

On July 31, CMOC (603993.SH, 03993.HK) released a continuing connected transaction announcement, proposing to re-sign commodity purchase and sales framework agreements with CATL Group and its connected subsidiary, Hong Kong KFM Holding Limited (hereinafter referred to as "KFM"), respectively, and substantially raise the annual transaction caps for product purchases and sales, operational services, and interest on funds from 2026 to 2028.

The supply chain ties between the copper and cobalt leader and the power battery leader were deepened further. The revision was driven not only by the expectations of a production surge from KFM's technological transformation and capacity expansion, but also by the impact of price fluctuations caused by the DRC's cobalt export quota policy, and involved t