Fujian-based battery manufacturer CATL has signed an agreement with the Shanghai Municipal People’s Government on Wednesday to set up a new battery production base in the eastern Chinese metropolis.
The Shanghai government said it also signed a strategic cooperation agreement with CATL that would bring the firm’s innovation center and headquarters of its international business to the city.
The investment pact for the production base was signed by CATL, the management committee of Lingang New Area and the industrial park developer Lingang Group.
Reuters reported in June that CATL was planning to build a new battery plant in Shanghai, citing two people with knowledge of the matter.
According to domestic business data provider Tianyancha, CATL established Ruitingshidai (Shanghai) New Energy Technology Co., Ltd. in May this year. The company’s business scope includes battery manufacturing and sales, and its registered address is adjacent to Tesla’s sprawling Shanghai factory. CATL became Tesla’s power battery supplier in 2020, and in June this year, the firms announced that the supply agreement would be extended to December 2025.
CATL revealed at a business performance conference held in May this year that it had invested more than 90 billion yuan ($14 billion) in production capacity. By the end of 2020, its battery capacity was 69.1 GWh. In the first quarter of this year, CATL’s revenue reached 19.1 billion yuan while net profit totalled 1.9 billion yuan.