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China’s CATL will spend $ 6 billion to develop and increase production of lithium batteries
The world’s largest manufacturer of lithium batteries – the Chinese company Contemporary Amperex Technology (CATL) – announced new investments to expand production. Over the next four years, the manufacturer will spend over 39 billion yuan ($ 6 billion) on developing new technologies and increasing the production of batteries. The world and domestic market in China is facing explosive growth in demand for electric vehicles, and the Chinese are seeking to lead the process.
Image source: WASITA | CATL
The declared amount will be spent on three large projects. First, to complete the R&D and production base for the development and production of rechargeable batteries and lithium batteries in Liyang City, Jiangsu Province (completion in 2022). Second, the CATL battery production base will be expanded in Yibin City, Sichuan Province (completion in 2023). Third, there will be an expansion of the company’s battery production in Fuding City, Fujian Province (completion in 2023).
China’s top investment bank, CICC, said on Wednesday that CATL’s total pledged investment in capacity in 2021 totaled 73 billion yuan ($ 11.18 billion), more than all previous investments by the company. According to the bank, in 2025, the global demand for batteries will reach 1,300 GWh. CATL’s contribution to this volume in the next 2-4 years will be 120-150 GWh. A competitor from South Korea breathes in the back of the head of the company – LG Energy Solutions. Their market shares are close, and even a relatively small expansion of production or a new contract could outweigh.