Shanghai (ZXZC)- Shenzhen BAK Power Battery Co., Ltd. ("BAK Battery"), a Chinese power battery maker, signed an agreement on Jan. 28 to form a strategic cooperation with the municipal government of Changzhou city, Jiangsu province, as part of efforts to expand its battery production capacity.

According to a post on the company's WeChat account, BAK Battery plans to build a battery production base in Changzhou city that involves a planned investment of 13 billion yuan ($1.916 billion) and covers an area of 450 mu (300,000 square meters). Under the project, the company will construct a big cylindrical battery manufacturing line with an annual production capacity of 30GWh and an R&D center.

BAK Battery's 4680 big cylindrical battery; photo credit: BAK Battery

Since the launch of the all-tab big cylindrical battery in early 2021, BAK Battery has been vigorously pushing ahead with the R&D and market application of big cylindrical batteries, said the company. The latest move signifies that the battery firm has gone into a new stage regarding the scale promotion of such product.

The yet-to-be-built base in Changzhou city will entirely use green power to realize low-carbon production, said Li Xiangqian, chairman of BAK Battery.

Founded in 2005 in Shenzhen city, BAK Power has a product and service line covering cylindrical, prismatic and polymer batteries, battery packaging, and battery solutions, which are mainly used in new energy vehicles, consumer products, and back-up energy storage.