CATL will work with Shandong to promote the development of the local new energy battery and materials, battery swap and energy storage industries, as well as the electrification of ships.
Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) plans to build a battery production base in Jining city, Shandong province, in East China, with a total investment of up to RMB 14 billion ($2.1 billion).
The Shenzhen-listed Chinese power battery giant disclosed the plan in an exchange announcement Thursday, saying the move is to meet market demand as the power battery and energy storage market continues to grow with the rapid development of the global new energy industry.
CATL will build production lines for power battery systems and energy storage systems at the site, which has a planned area of about 2,000 mu (1.33 square kilometers), and its construction period will be no more than 24 months from the start of construction, according to its announcement.
Separately, CATL said in a post on its official WeChat account on Thursday that it signed a strategic cooperation framework agreement with the Shandong provincial government in Jinan on July 21, and signed a general investment agreement and battery swap network investment agreement with the Jining municipal government.
CATL and the Shandong government are working together to promote the development of the local new energy battery and materials, battery swap and energy storage industries, and to advance the electrification of ships, according to the article.
CATL currently has ten production bases worldwide, located in Ningde, Fujian; Xining, Qinghai; Liyang, Jiangsu; Yibin, Sichuan; Zhaoqing, Guangdong; Lingang, Shanghai; Xiamen, Fujian; Yichun, Jiangxi; Guiyang, Guizhou; and Erfurt, Germany, according to a profile on its website.
Late last month, CATL announced that it raised about RMB 45 billion through a private placement, which will be used for lithium battery capacity construction, technology development and other projects.
Among them, the capacity construction project involves CATL's four production bases in China, located in Fuding, Fujian, Zhaoqing, Guangdong, Liyang, Jiangsu and Ningde, Fujian.
CATL installed 13.4 GWh of power batteries in China in June, ranking first with a 49.6 percent share, according to data released by the China Automotive Battery Innovation Alliance on July 11.
BYD (SHE: 002594, HKG: 1211, OTCMKTS: BYDDF) ranked second with a share of 18.53 percent, having installed 5.01 GWh of power batteries in China in June.