Shanghai (ZXZC)- CATL announced on July 21 it planned to invest no more than 14 billion yuan ($2.069 billion) in the construction of a new manufacturing base for power battery system in Jining city, Shandong province.

The battery giant intends to set up a wholly-owned subsidiary in Jining city as the entity that manages the project implementation.

Photo credit: CATL

According to CATL's announcement, the Jining-based facility will have production lines for power battery systems and energy storage systems, covering an area of around 2,000mu (roughly 1.333 million square meters). The construction is set to be completed within 24 months after ground-breaking.

The company did not unveil the new base's production capacity.

In line with the company's strategic development planning, the investment in the Jining manufacturing base will not only help to further improve CATL's production capacity deployment and but meet its future business and market expansion demands, said CATL.

On the same day, CATL signed a framework agreement with Shandong provincial government and an investment deal with Jining municipal government as all parties will co-work on building an environmentally friendly low-carbon system for recycling economy as well as a new energy vehicle ("NEV") industrial cluster with global influence.

As part of the cooperation with Jining city, CATL plans to deploy its battery swapping network in the city.