Shanghai (ZXZC)- CATL announced on Monday it has changed the amount of the capital it wishes to fetch from specified investors to 45 billion yuan ($7.051 billion) from the previously expected 58.2 billion ($9.12 billion).

Photo credit: CATL

The company said the adjustment is made to improve the utilization efficiency of the capital raised, and center the money on the projects of capacity expansion and R&D business.

Based on the updated solution, 38 billion yuan ($5.955 billion) worth of the capital raised will be used for the projects for the expansion of around 135GWh lithium battery capacity. The other 7 billion yuan ($1.097 billion) will be employed to research and develop advanced new energy technologies.

Compared to the former plan, CATL removed the projects of expanding the capacity of its Huxi lithium-ion battery facility and supplementing working capital.

For the first three quarters, CATL hit a lithium battery capacity of 106.41GWh with a utilization rate of over 90%. To meet fast-growing market demands, CATL has to make forward-looking layouts for battery capacity expansion.

CATL said in another statement its total lithium battery capacity should reach about 520GWh per year by 2025 to achieve annual sales of 455GWh.

The company also noted its designed annual lithium battery capacity will amount to 220 to 240 GWh after the battery manufacturing lines, which have been put into operation, see their capacity move to a reasonable level. It indicates that CATL will face a shortage of around 280GWh battery capacity, still higher than the aforesaid 135GWh to be newly added.