CATL Investing CNY 19 Billion to Strengthen Global Industrial Chains

Industrials Author: Yangni Liu Aug 13, 2020 03:28 AM (GMT+8)

With the continuous development of the new energy car industry, CATL has gradually become a tier-one firm. The investments aim to strengthen cooperation across the whole industrial chain.

Image Credit: Umberto / Unsplash

According to CATL’s announcement, it will invest in both upstream and downstream industrial chains. Specifically, the total investment amount will not surpass CNY 19 billion, and foreign investment will not rise over USD 2.5 billion.

Under the background of the global energy revolution, transformation and upgrading, the new energy car industry has developed quickly over these past years. Nevertheless, the industrial chains still have issues in incomplete equipment and a shortage of critical resources. Hence, CATL should invest in high-quality firms in the long-term, further increasing synergy and efficiency.

Except for industrial chains, CATL is also accelerating its cooperation with original equipment manufacturers. For instance, Honda (本田) bought a stake in CATL for CNY 3.7 billion, and they will cooperate on batteries and recovery. Furthermore, CATL became the first provider of Benz this August, providing CTP (无模组电池包) productions.