Shanghai (ZXZC)- CATL intends to set up a lithium ion battery production base at Cheliwan Pond in Ningde with RMB10 billion to be invested at most, the power battery giant announced on Feb. 26.

The base is built to help CATL consolidate its leading position in battery market and further expand its capacity deployment amid the continuous growth in demands of NEV power battery and energy storage battery thanks to the fast-developing domestic and overseas NEV markets as well as the increasing maturity in applications of energy storage scenarios, said the company.

All the money to be invested will be raised by the company itself. The announcement shows the base is likely to cover 1,300 mu (866,666 square meters) and is set to be completed within two years.

At the same time, CATL warned investors of the possible loss, saying the economic returns would be affected by the dramatic change of market climate, which is associated with the promotion performance of NEVs and energy storage products, relevant industrial policies and the fierce market competition.

Moreover, CATL seeks to raise up to RMB20 billion by making a non-public issuance of securities towards no more than 35 specific investors, according to another file released on the same day. After deducting the issuance expenditure, the money collected will be used to expand CATL’s Huxi lithium ion battery base, develop the lithium ion battery R&D and production project in the name of Jiangsu CATL, construct the power battery facilities for Sichuan CATL and supplement working capital, etc.