Contemporary Amperex Technology (CATL) is planning to set up a new production base in the city of Yibin in China’s Sichuan province, according to a filing in Shenzhen Stock Exchange. The new facility into be built on an investment of CNY10 billion ($1.4 billion).
CATL will be self-financing this project and believes that this investment will be beneficial for the company in the long-term. The construction of the facility on the 165 acre land will be managed by a subsidiary formed the the company. Last year, the battery manufacturer had formed a lithium joint venture with government organisations and other parties in Yibin.
The company had also announced last week that it will be issuing corporate bond of CNY10 billion ($1.4 billion). It is believed that this capital infusion would be used to expand its production capacity to help serve the rapidly accelerating EV market both domestically as well as globally.