Ningde, Fujian province, where is headquartered, has seen new cases of Covid, but the company has ensured that its base in the city is in production.

(Image credit: CATL)

With a new Covid pandemic breaking out in several provinces and cities, there are concerns about whether production at China's largest power battery supplier, Contemporary Amperex Technology (CATL), has been affected.

CATL (SHE: 300750) is not currently shutting down production and is producing in an orderly manner through grid-based management, the Ningde, Fujian-based company was quoted as saying today by Shanghai Securities News.

Recently there were individual cases of Covid in Ningde, and the local government temporarily upgraded control measures. CATL strengthened communication and collaboration with local authorities to fight the pandemic, the report said, citing sources from the company.

To maximize supply, CATL strictly adopted grid-based management measures to ensure that the base in Ningde carries out production in an orderly manner, the source said, adding that CATL is not currently shutting down production.

China added 1,318 local confirmed Covid cases on April 9, as well as 25,037 local asymptomatic infections, according to health authorities.

The vast majority of those were in Shanghai, which reported 1,006 local confirmed cases on Saturday, as well as 23,937 local asymptomatic infections.

Fujian province reported nine confirmed cases of Covid on Saturday, including one case in Ningde, where CATL is headquartered. Ningde has been under increased travel restrictions in some areas since April 10, according to local media reports.

CATL currently has 10 production bases around the world with a total planned capacity of over 550 GWh, of which the one in Ningde city is the largest, with a total planned capacity of 171 GWh.

Notably, CATL has a battery assembly plant a few blocks from 's Giga Shanghai, and it's unclear if the plant is shut down due to the lockdown in Shanghai.

Shanghai went into a phased lockdown on March 28, and Tesla Giga Shanghai has been shut down since then, one of the longest shutdowns since the plant began production in late 2019.

, one of CATL's largest customers, said on April 9 that it had suspended production because Covid had caused its supply chain partners to shut down production.