Sections

ideals
Business Essentials for Professionals



New Auto Battery Plant In Shanghai To Be Built By Tesla Supplier CATL: Reuters


06/04/2021


New Auto Battery Plant In Shanghai To Be Built By Tesla Supplier CATL: Reuters
China's CATL is continuing to expand at a frantic pace and is now planning to set up a major new automotive battery plant in Shanghai, in China, said a report published by the news agency Reuters. The completion of the factory will make the company the leading supplier of auto batteries in the world, said the report quoting sources with knowledge of the matter.
 
The new facility will have an installed capacity of manufacturing about 80 gigawatt-hours of battery cells annually which would add on to the company’s already installed production capacity of 69.1GWh as well as to the production capacity of another 77.5GWh of batteries that is currently under construction.
 
Last year the Chinese firm started supplying car batteries to the United States based electric car maker Tesla for its cars and the constructing the plant in Shanghai will put this facility of the company close to the Chinese auto production facility of Tesla. The location will also allow CATL to get access to a larger and more diversified pool of talent compared to what is available for it for its manufacturing plant at the headquarters of the company situated in Ningde in South Eastern China, the report said quoting the sources. 
 
Sources also said that other suppliers of car batteries for Tesla’s cars – particularly Panasonic Corp and LG Chem's LG Energy Solution unit, will face more competition following the completion and coming online of CATL’s this facility.
 
The report stated that negotiations with the Shanghai government were being carried out by CATL about the construction of the factory. The sources however could not confirm when two parties could reach a final agreement on the new plant or when the Chinese auto battery maker expects the facility to be completed and to begin production.
 
There were no comments on the issue available from CATL as well as Tesla and the Shanghai government.
 
(Source:www.reuters.com)