ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Technology

China's CATL invests $2bn in plant for new lithium battery

World's largest producer on pace to quintuple total capacity

CATL looks to quintuple battery production capacity to 600 gigawatt-hours by 2025.

GUANGZHOU -- CATL, the world's largest producer of electric vehicle batteries, will spend up to 13.5 billion yuan ($2.09 billion) on a plant in China to produce a new type of lithium battery.

The Chinese manufacturer struck an agreement Monday with the Jiangxi Province city of Yichun to build the plant. The factory is expected to produce automotive batteries, such as those for EVs.

The production capacity and construction start date have not been disclosed, but the company said the facility is meant to expand operations in response to market demand.

Including joint venture locations, CATL plans to build or expand about 20 domestic factories and one in Germany, according to Chinese brokerage SooChow Securities. The company's total battery production capacity is projected to reach roughly 600 gigawatt-hours in 2025, or quintuple the level in 2020.

CATL, formally known as Contemporary Amperex Technology Co. Ltd., has increased spending to expand production over the past two years. In February 2020, the company announced a plan to invest as much as 26 billion yuan to boost capacity.

In December, CATL outlined a plan to invest up to 39 billion yuan, then announced this February a decision to invest up to 29 billion yuan. To fund the fresh spending, CATL said last month that it plans to raise as much as 58.2 billion yuan through a private share placement.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more