Chinese car battery maker Contemporary Amperex Technology Ltd (CATL) is planning to build the second-largest factory in the world, in Ningde, Fujian Province. The new battery plant will enable CATL to surpass the production capacity of Tesla and of competitors like BYD in China and South Korea’s LG Chem.
The new factory is a US$1.3 billion investment for CATL, second in size only to Tesla’s Gigafactory in Nevada. CATL already sells the most batteries to the biggest electric-vehicle makers in the biggest EV market: China. According to a report by Bloomberg New Energy Finance, the new facility will quintuple CATL’s production capability and make it the world’s largest electric-vehicle battery cell manufacturer.
The factory is to start production in 2020, in time to support China’s plans to increase the number of new-energy vehicle sales in 2025 by 700 per cent. The South China Morning Post reports that China surpassed the US in 2015 to become the world’s biggest market for electric cars. The China Association of Automobile Manufacturers estimated that sales of new-energy vehicles – including battery-powered, plug-in hybrid and fuel-cell vehicles – reached 777,000 units last year and could surpass 1 million in 2018.
Photo by Catl
Further reading on scmp.com