The world’s largest manufacturer of lithium batteries, China’s Contemporary Amperex Technology (CATL), has 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 battery production. The world and China’s domestic market is facing an explosive growth in demand for electric vehicles, and the Chinese are eager to lead the process.
The announced 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, the company’s battery production will expand in Fuding City, Fujian Province (completion in 2023).
China’s top investment bank, CICC, said Wednesday that CATL’s total pledged investment in capacity in 2020 totaled 73 billion yuan ($ 11.18 billion), more than all of the company’s previous investments. According to the bank, in 2025, 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, LG Energy Solutions, is breathing down the back of the head. Their market shares are close, and even a relatively small expansion of production or a new contract could outweigh.
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