China’s CATL Shanghai is planning a major new automotive battery plant in Shanghai that will continue at a rapid pace of expansion, consolidating its leadership as the world’s number one supplier, according to two people who know the subject. The Shanghai location will be located near Tesla Inc.’s Chinese production base after China began supplying batteries for Model 3 cars in the U.S. automotive industry last year.
CATL hopes to expand that relationship quickly, as it aims to become its largest supplier in the near future by offering Tesla half of the batteries it uses in electric vehicles and roof energy storage worldwide, the main source of the Chinese company said. The new plant could make 80 gigawatt-hours of battery cells a year, a second person said it would be 69.1GWh at current production capacity and another 77.5GWh under construction.
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CATL has been in talks with the Shanghai government about building the factory, people said the location will allow the company to benefit from a larger and more diversified Talent pool than its headquarters in Ningden, southeast China. It was not immediately clear when a final agreement could be reached or when CATL expected the new plant to be up and running.
CATL said it is working with Tesla to talk to Tesla and is asking for help on Tesla battery solutions from the company, but has not given up on any plans for additional production capacity. The Shanghai government and Tesla did not immediately respond to a request for comment.
Expansion plans for other Tesla battery suppliers, Japan’s Panasonic Corp. and South Korea’s LG Energy Solution, a unit of LG Chem, would add to the competitive pressure. Many battery manufacturers are stepping up production to meet worldwide demand as car manufacturers accelerate their acceleration to electric vehicles to meet tougher emission regulations set to combat global warming. In April, Tesla asked its suppliers to produce as much as possible.
In March, LG Energy Solution said it plans to invest more than $ 4.5 billion over the next four years in U.S. battery production. Analysts say that by 80GWh a year, the new plant in Shanghai would be able to power 800,000 electric cars. The second source said Tesla will likely be located in Lingang, in the New Zone of Pudong, south of its plant in Shanghai, and will hire 5,000 workers and manufacture cell chassis (CTC) batteries.
New technology directly accumulates cells in the framework of an EV to increase the energy density of battery systems. CATL President Zeng Yuqun said electric vehicles can achieve more than 800 km of guidelines with CTC technology, adding that CATL technology is to be launched before 2030. In comparison, CATL cell package technology is used at Tesla. Model 3 cars give vehicles a range of about 468 km per load.
CATL is also considering setting up a research center and a global sales and operations center in Shanghai due to difficulties in retaining and hiring Ningden staff, the source said. The CATL listed in Shenzhen closed 2.3% on Thursday, and the battery manufacturer was worth $ 155 billion. The broad ChiNext composite index fell 1.3%.
Its shares have risen about 18% this year as sales have risen. CATNE, which also includes customers such as Volkswagen, General Motors, BMW and Daimler and Chinese carmakers, saw battery sales nearly quadruple in the first four months of 2021 to 21.4 GWh in the first four months of 2021. LG Energy Solution’s sales rose 133% to 14.2 GWh while Panasonic’s sales rose 51% to 9.7 GWh, the report said.
This story has been published without text changes from a wireless agency feed. Only the title has changed.
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