CATL, China's largest automotive lithium-ion battery maker, is going to invest RMB 29 billion ($4.5 billion) in three battery projects in Yibin, Zhaoqing, and Xiapu, considering the strong market demand for lithium batteries.

In Yibin, Sichuan, the project will have a total investment of no more than RMB 12 billion and will be built in two phases, with each phase lasting no more than 26 months and covering a total area of about 1,000 mu.

In Zhaoqing, Guangdong, the total investment of the project will not exceed RMB 12 billion. The project construction period will not exceed 24 months and the total project area will be about 1,000 mu.

In Xiapu, Fujian, the total investment of the project will not exceed RMB 5 billion. The construction period of the first phase of the project will not exceed 12 months and the total land area will be approximately 750 mu.

CATL said that the projects in Yibin and Zhaoqing will further improve the company's production capacity layout, while the project in Xiapu is conducive to strengthening the company's in-depth cooperation with important customers.

On China's A-share market, CATL rose 4.99 percent to close at RMB 367.8 yuan, giving the company a total market cap of RMB 856.8 billion.

CATL just announced a round of investment expansion plans at the end of last year, with five existing production sites in Ningde, Fujian, Xining, Qinghai, Liyang, Jiangsu, Yibin, Sichuan, and Erfurt, Germany.

Despite COVID-19, the global installed power battery capacity in 2020 maintained a 17% growth, with CATL's installed capacity ranking first in the world for the fourth consecutive year, according to research firm SNE.

Zeng Yuqun, chairman and CEO of CATL, said at the 2021 China EV100 Forum that the growth of capacity supply in the global lithium battery market chain is relatively slow, and the effective supply is insufficient.