CATL Begins Construction of 25 GWh/yr Battery Plant in Fujian

CATL

China’s largest battery manufacturer, CATL (Contemporary Amperex Technology Co., Ltd.), has started building its No. 5 plant at the Fuding battery production complex in Fujian province. The plant, with an annual production capacity of 25 GWh, is part of CATL’s strategy to expand its dominance in the global new energy power battery market.

Key Details of the Project

• Investment: 6.47 billion yuan ($910 million).
• Timeline: Construction is set to finish by June 2025, with production commencing shortly afterward.
• Fuding Complex: CATL’s largest single battery production site, with a total capacity of 120 GWh/yr, has already completed four plants.

A 1 GWh lithium-iron-phosphate (LFP) battery typically requires 2,300 tons of lithium carbonate feedstock, underscoring the significant demand for lithium resources that the plant will generate.

CATL’s Global Production Leadership

• Current Output: CATL produced 211 GWh of batteries from January to June 2024, accounting for 65% of its total capacity of 323 GWh/yr.
• Growth: This represents a 37% increase from 154 GWh during the same period last year.
• Global Footprint: CATL operates 13 production bases worldwide, solidifying its leadership in the energy storage and electric vehicle battery sectors.

Concerns About Potential Oversupply

China’s power battery production has led global growth over the past decade, driven by surging demand from the new energy vehicle (NEV) market. However, rapid capacity expansions have raised concerns about potential oversupply, which could pressure margins and disrupt market dynamics, according to industry participants.

Strategic Importance

CATL’s latest expansion in Fujian aligns with its mission to support the fast-growing NEV market while staying ahead of competitors. The additional capacity will play a critical role in meeting the global shift toward renewable energy and electric mobility.