Battery maker CATL confirms to set up a production base in Shanghai- PingWest

Battery maker CATL confirms to set up a production base in Shanghai- PingWest

Battery maker CATL confirms to set up a production base in Shanghai

August 19, 2021 2:39 am

Contemporary Amperex Technology Co Ltd (CATL), the top Chinese electric vehicle (EV) battery maker, will set up a production base in Shanghai.

Details: The Shanghai government said on Wednesday that it has inked an agreement with CATL to set up a production base in Lingang New Area, and also signed a strategic cooperation framework agreement to bring CATL's innovation center and the headquarters of its international business to the city.

CATL said in a separate statement that that agreement would focus on Shanghai's efforts to peak carbon emissions and become carbon neutral. China has pledged to reach peak emissions by 2030 and be carbon neutral by 2060.

Citing people familiar with the matter, Reuters reported in June that CATL was planning to build a new battery factory in Shanghai, where its main customer, the Tesla Gigafactory is located. The new plant will be able to produce 80 GWh of batteries per year, which would come on top of 69.1GWh in current production capacity and another 77.5GWh under construction, said the report.

Context: The EV continues to heat up, driving the growth of battery sales. As China's largest manufacturer of automotive lithium-ion batteries, CATL is also accelerating its deployment. The battery maker announced in February that it plans to invest up to 29 billion yuan (about $4.5 billion) to expand production capacity.

CATL signed a two-year deal to supply batteries for Tesla's Model 3 cars in February 2020. Its other clients include BMW, Daimler, Honda, Toyota, Volkswagen, and Volvo.

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