Chinese battery giant Contemporary Amperex Technology (CATL) will charge up its production capacity by building a $1.4 billion manufacturing base in the southwestern city of Yibin, according to a Thursday filing to the Shenzhen Stock Exchange.
The company, whose lithium-ion batteries are widely used in electric vehicles and energy storage systems, plans to set up an affiliate or subsidiary in the city to manage the construction of the 165-acre factory.
CATL will raise the funds for the facility on its own, the filing said. The company said that the long-term development prospects of the project outweigh the short-term rise in capital expenditure.
The plan forms part of CATL’s overall strategy in Sichuan province, which the company believes has vast market potential and rich industrial experience. Last year, CATL established a lithium joint venture in Yibin with government-affiliated organizations and other parties.
Last Thursday, CATL announced that it will issue up to 10 billion yuan ($1.4 billion) in corporate bonds. The company did not specify how the funds will be used, but insiders believe the capital will help CATL cover the expenses of projects including the construction of a battery factory in Germany and its 8.5% stake purchase of Australian mining company Pilbara Minerals.
Contact reporter Zhao Runhua (email@example.com)