In December alone, the price of battery-grade lithium carbonate rose by 40 percent.

BYD, China's largest maker of new energy vehicles (NEVs), has extended its reach in the supply chain by participating in the establishment of a mineral mining company.

On December 30, Sichuan Shuneng Minerals Co was set up with a registered capital of 500 million yuan, information from data provider Tianyancha shows.

The company has four shareholders, with the largest shareholder being Sichuan Road & Bridge Co Ltd, with a 67 percent stake, and BYD holding 1 percent, the information shows.

The company's business scope includes mineral resources mining, exploration, mineral processing, recycling, new materials technology research and development, metal and non-metal mineral resources exploration, non-metal mineral products manufacturing, and new construction materials manufacturing.

BYD, China's largest manufacturer of NEVs, is also one of the largest makers of power batteries.

Data released earlier this month by the China Automotive Battery Innovation Alliance showed that BYD's battery installed base in China in November was 3.46 GWh, with a market share of 16.6 percent, second only to CATL.

(Graphic by CnEVPost)

It's worth noting that as NEV sales continue to reach record highs this year, the prices of raw materials used in batteries have risen one after another.

According to Mysteel Group, the price of battery-grade lithium carbonate rose by RMB 4,000 per ton today, with the average price exceeding RMB 280,000 per ton.

By comparison, a month ago, the price of battery-grade lithium carbonate was around RMB 200,000 per ton. This means that in December alone, the price of battery-grade lithium carbonate rose by 40 percent.

In November, BYD sold 91,219 NEVs, up 242 percent year-on-year and up 13 percent from October.

It sold 509,838 NEVs in the first 11 months of the year, up 217 percent from 160,848 units in the same period last year.

BYD said in an investor conference call earlier this month that its 2022 NEV sales target is roughly in the range of 1.1-1.2 million units, with 600,000 BEVs (battery electric vehicles) and 500,000-600,000 PHEVs (plug-in hybrids).