Chinaese lithium-ion battery manufacturer Contemporary Amperex Technology Co Ltd (CATL) is planning to invest CYN29bn ($4.5bn) to build three battery manufacturing plants in China, as per media reports citing a statement by the company.
The three plants are expected to increase CATL’s total battery production capacity.
The company, which supplies batteries to US automaker Tesla, said that it will invest up to CYN12bn ($1.85bn) to build a production base for automotive and energy-storage batteries in Zhaoqing in south China’s Guangdong Province. The construction of the plant will take around two years. The Zhaoqing project is part of the strategic cooperation framework agreement CATL signed with the Guangdong provincial government. Through that, the company aims to form an industrial chain covering power battery cells, materials for lithium batteries, energy-storage application, battery recycling, new energy vehicle (NEV), driving motor, and electric control unit.
Phases 5 and 6 of battery plant Yibin
The company will also invest CNY12bn ($1.85bn) for phase 5 and phase 6 of an EV battery production plant located in Yibin in southwestern Sichuan Province. Its construction will be completed in phases, with up to 26 months each.
Battery production expansion in Xiapu County
CATL plans to invest another CNY5bn ($773.85mn) to expand the capacity of its power battery production plant in Xiapu County of Ningde, a city in east China’s Fujian Province. The project is a joint venture between CATL and Chinese automaker FAW Group. The project is expected to be completed in two phases.
The company has not yet disclosed information regarding the capacity of the plants.
In December 2020, CATL had announced that it plans to expand its battery production capacity to meet the growing demand from the new energy vehicle (NEV) sector. Lithium-ion batteries are mainly used in electric vehicles (EV).