As a leader in the power battery industry, the company has always been seeking development opportunities in China.
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On February 2, 2021, CATL announced plans to set up three battery production facilities in Zhaoqing, the Yibin International Port Economic and Technological Development District and Ningde City, with a total investment value of CNY 29 billion. Meanwhile, CATL signed a strategic cooperation framework agreement with the Guangdong Government to build a 25GWh lithium battery production facility and form a new battery industry chain including power battery cells, lithium battery materials, energy storage applications, battery recycling, new energy vehicles, and drive motors. According to CATL, the capacity of the facility will reach 150GWh by the end of 2030.
The new energy vehicle market continues to heat up, driving the rise in power battery demand. According to the sales data recently released by EV manufacturers in January, NIO, Li Auto, and XPeng delivered 7,225, 5,379, and 6,015 new models respectively, surging 352.10%, 355.8%, and 470% year-on-year. It is estimated that the sales volume of EVs in China will reach 2 million in 2021, and the power battery demand will reach 100 GWH. CATL is expected to have a better financial performance in the first quarter.