Shanghai – On Feb 19, 2022, China’s top electric vehicle (EV) battery maker Contemporary Amperex Technology Co., Limited (CATL) (300750.SZ) officially begin ground-breaking for its new manufacturing base in Shanghai.
(Photo credit: CATL)
Located in Shanghai’s Lingang New Area, where Giga Shanghai is located, the manufacturing base involves a total investment of 2.8 billion yuan （$443million）and covers a floorage of 350,000 square meters.
The CATL project will be completed and operational within a year.
Why it matters:
“Landing in Lingang is a crucial step in CATL’s strategic development.” CATL New Energy Technology Co., Ltd. assistant chairman Qu Tao said.On the one hand, CATL will build a green, efficient intelligent factory in the new Lingang area to optimize the layout of the new energy industry; On the other hand, CATL will also focus on mileage anxiety, fast charging and other industry pain points to launch a technical assault to achieve key technology upgrades in the industry.
Tesla Giga Shanghai’s delivery volume last year was close to 500,000 units, which is very big.
We have previously reported that Tesla intends to increase Shanghai’s Giga production capacity to more than 1 million units annually in the coming years.
If the battery module base is not built in Lingang, the transportation cost of the batteries alone is very high, plus the battery transportation cycle is long.
According to the introduction, CATL will also build the layout of the “four innovation systems” in Shanghai, including advanced materials, system structure, extreme manufacturing and business model innovation, to achieve key technology upgrades in the industry.
According to the global installed capacity of electric vehicle power batteries in 2021 announced by the South Korean research institute SNE Research, CATL, market share exceeds 30%, ranking first in the world for five consecutive years.
Net profit for CATL in 2021 announced to increased more than 150%.