The power battery leader is taking advantage of market trends and has accumulated money in advance of CNY 80 billion for expansion projects.
On February 25, 2021, CATL announced that it plans to invest in a new CATL-SAIC power battery production line in Jiangsu Liyang Zhongguancun High tech Zone, with a total investment of CNY 105 billion. CATL-SAIC Motor Power Battery is a joint venture between CATL and Shanghai Automotive Group, with CATL times holding 51% and the Shanghai Automotive 49%. Against the background of the rapid development of the new energy vehicle market, CATL, as a core component supplier, has been expanding production frequently in the past two years. According to statistics, including the latest investment projects in Jiangsu Liyang, the company has invested about CNY 80 billion in expansion projects in the past three months.
The large battery company said that the investment is in line with the company's strategic development plan and will further improve the company's production capacity layout. The investment and construction of this project will increase the capital expenditure and cash expenditure of the company, but it will have a positive impact on the company's long-term development path.