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Battery giant CATL invests 2 billion US dollars in new factory

17. February 2022

The world’s largest manufacturer of vehicle batteries, CATL, is investing the equivalent of US$2.09 billion in a new manufacturing facility in China to produce a new type of lithium battery. In mid-September 2021, the Chinese company announced the agreement on the project with the municipal government of Yichun, Jiangxi province. The new factory will exclusively produce batteries for electric vehicles such as cars, commercial vehicles and two-wheelers. CATL has not yet given any details about the exact production capacity and the start of construction. According to CATL, the factory will complement the current capacities and is intended to respond to the increased demand in the market. The production of lithium batteries depends, among other things, on components and production equipment requiring CCC certification, as these can only be imported into and sold on the Chinese market in a certified manner.



Including joint ventures, CATL operates 20 production facilities in China and one in Germany, Chinese stockbroker SooChow Securities reported. CATL’s total battery production volume is expected to be about 600 gigawatt hours in 2025, five times the amount from 2020. CATL, whose full name is Contemporary Amperex Technology Co Ltd, has already increased spending on expanding production capacity in the past two years. In December 2020, a plan was revealed to invest the equivalent of US$6.1 billion, then in February the amount was reduced to US$4.5 billion. In order to fund such large sums, CATL raised about US$9.1 billion through a private placement of shares last month.

Batteries and their components have to be CCC certified in order to be exported to China or manufactured locally. CCC certification is a complex project that requires professional support at all stages. For several years, MPR China Certification GmbH has been entrusted with large CCC projects for the vehicle manufacturers Lotus, Tesla and Bugatti. We will be pleased to provide you with non-binding advice on the scope and requirements of a China CCC certification.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
Please don’t hesitate to also use our chat-window in the bottom right corner if you have any questions. (Please check your browser settings if you can’t see the window)

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Here you can download our brochure about the CCC Self-Declaration.

Here you can download our brochure about the voluntary CCAP or CQC certification.

MPR Author

About the author: Julian Busch is founder and Managing Director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

Tel.: +49 69 271 37 69 150