Shanghai (ZXZC)- CATL-Geely Power Battery Co.,Ltd. (CATL-Geely), a joint venture between CATL and Zhejiang Jirun Automobile Company Limited (Zhejiang Jirun), attempts to invest not more than 8 billion yuan ($1,148,484,800) in constructing a power battery facility at Yibin, Sichuan Province, CATL announced on August 11.

Registered on April 3, 2019, CATL-Geely is held as to 51% by CATL, China's largest power battery manufacturer, and 49% by Zhejiang Jirun, whose chairman is An Conghui, President and GEO of Geely Auto Group. It is set up to produce and sell power batteries.

(Photo source: CATL)

CATL said the Yibin investment will be favorable to its long-term development and strategic deployment, and help the company strengthen the collaboration with important clients and further enlarge CATL's business scale by leveraging the current resources and advantages of the joint venture’s two parent company, so as to improve its sustained profitability and core competency.  

On Feb. 26, the Ningde-based power supplier said it sought to raise up to 20 billion yuan ($2,871,212,000) by making a non-public issuance of securities towards no more than 35 specific investors. After deducting the issuance expenditure, the money collected would be used to expand CATL's Huxi lithium ion battery base, develop the lithium ion battery R&D and production project operated by Jiangsu CATL, construct the power battery facilities for Sichuan CATL, and supplement working capital, etc.

The capital to be raise has been reduced to 19.7 billion yuan ($2,828,143,820), CATL announced on May 27. The adjusted schedule show that the money decreased will only affect the supplement of working capital, while the capital reserved for the other projects still remain unchanged.