Shanghai (ZXZC)- CATL saw the first phase of its power battery manufacturing base in Yibin, Sichuan province start operation on June 17, according to a post on the company's WeChat account.

CATL's Yibin power battery base' first phase; photo credit: CATL

“As an important part of CATL's global deployment, the Yibin base will be CATL's most strategically significant power battery production base in Southwest China and will serve our OEM partners countrywide or even worldwide with a higher efficiency,” said Zeng Yuqun, chairman of CATL.

CATL and the government of Yibin City have so far inked agreements for six phases of power battery projects since September 2019, which involve a total investment of 30 billion yuan ($4.657 billion). Due to Yibin's excellent transport condition, the power batteries made at the Yibin factory can be delivered to complete vehicle manufacturing plants in Chengdu or Chongqing within only 3 hours, so as to greatly improve the logistics efficiency, said CATL. Besides, the city's abundant water resource will be conducive to meeting the requirements of emission reduction for CATL.

CATL is placing strong emphasis on the NEV development of Sichuan Province which boasts rich resources, huge market potential, solid industrial foundation and outstanding science and education strength. In 2018, it started cooperation with Yinbin's local government and Suzhou's Canmax on a joint venture focusing on R&D, production and sale of lithium battery materials and products. 

In the first five months of 2021, CATL's power battery installed capacity was 20.32GWh, which accounted for 49.1% of China's overall market share, according to the China Automotive Power Battery Industry Innovation Alliance.