Ningde Times invests in building a power battery manufacturing base in Yibin! PI coated metal materials will usher in an explosive period

On the evening of December 30th, CATL announced that the company plans to invest in the construction of the seventh to tenth phases of the power battery Yibin manufacturing base project in Sanjiang New District, Yibin City, Sichuan Province, through its wholly-owned subsidiary Sichuan Times New Energy Technology Co., Ltd. The total investment of the project will not exceed RMB 24 billion. In recent years, CATL has frequently invested in Yibin, Sichuan and is optimistic about the western automotive industry.

Constructing a battery base

According to official news from CATL, CATL New Energy Technology Co., Ltd. recently signed an investment agreement for the Sichuan Times Phase 7-10 project with the Sanjiang New Area Management Committee of Yibin in Chengdu. According to the agreement, CATL will further improve its production capacity layout on the basis of the original six phase project. Through its wholly-owned subsidiary Sichuan Times New Energy Technology Co., Ltd., CATL will invest in the construction of the seventh to tenth phases of the Yibin Power Battery Manufacturing Base project in Sanjiang New Area, Yibin, with a total investment of no more than 24 billion yuan.

The announcement shows that each phase is expected to take no more than 20 months from the start of construction, with a planned land area of approximately 3200 acres. CATL stated that with the rapid development of the new energy vehicle market both domestically and internationally, the market for the power battery industry continues to grow. The construction of this project is aimed at further promoting business development and meeting market demand.

Ningde Times also pointed out in the announcement that due to various factors affecting project construction, including but not limited to resource guarantee, local supporting policies, etc., there is a risk that the project may not be completed on schedule or the construction cost may exceed the expected cost. At the same time, the market situation of lithium-ion power batteries is influenced by the promotion of downstream new energy electric vehicles and related industry policies, and market competition is becoming increasingly fierce. If there are significant changes in the market situation, it will have an impact on the economic benefits of this project.

Valuing the Western Automotive Industry

Yibin, Sichuan has frequently appeared in the investment map of Ningde Times in recent years.

As early as September 2019, CATL announced that in order to further promote the company's production capacity layout, it planned to invest in the construction of a power battery manufacturing base in Yibin City, Sichuan Province, with a total investment of no more than RMB 10 billion. The project will be constructed in two phases. The first phase will take no more than 26 months from the start of construction, and the second phase is planned to be launched within two years after the first phase is put into operation. The final construction situation shall prevail. The total area of the project is about 1000 acres, with the first phase occupying about 400 acres and the second phase occupying about 600 acres.

In August 2020, CATL announced that the company and Zhejiang Jirun Automobile Co., Ltd. signed a "Joint Venture Contract" on December 20, 2018, intending to jointly establish a joint venture company, CATL Geely Power Battery Co., Ltd., to carry out power battery production and sales business, and complete the registration and establishment of CATL Geely on April 3, 2019. On August 10, 2020, the company approved the proposal on the investment and construction of the Yibin project for power batteries by its controlling subsidiary, Times Geely Power Battery Co., Ltd. The holding subsidiary, Times Geely, intends to invest in and construct the Yibin project for power batteries.

In December 2020, CATL announced its plan to invest in the expansion of the Yibin Power Battery Manufacturing Base project in the Lingang Economic and Technological Development Zone of Yibin City, Sichuan Province, with a total investment not exceeding RMB 10 billion. The total area of the project is about 950 acres, with the first phase occupying about 500 acres and the second phase occupying about 450 acres.

In February 2021, CATL announced again that it plans to invest in the construction of the fifth and sixth phases of the Yibin Power Battery Manufacturing Base project in the Lingang Economic and Technological Development Zone of Yibin City, Sichuan Province, with a total investment of no more than RMB 12 billion. The total area of the project is about 1000 acres, and it will be constructed in two phases. The fifth phase of the project covers about 500 acres, and the sixth phase covers about 500 acres.

In April 2021, Ningde Times announced that its wholly-owned subsidiary Ningbo Meishan Bonded Port Area Wending Investment Co., Ltd., together with Ningbo Meishan Bonded Port Area Chendao Investment Partnership Enterprise (Limited Partnership), Yibin Emerging Industry Investment Group Co., Ltd., Qingdao Jiayu Hongde No.1 Equity Investment Partnership Enterprise (Limited Partnership), and Xinyin (Ningde) Industrial Investment Partnership Enterprise (Limited Partnership), jointly invested in the establishment of the "Yibin Chendao New Energy Industry Equity Investment Partnership Enterprise (Limited Partnership)", with special investment layout in battery raw materials, power battery system solutions, new energy vehicles, energy storage systems, power battery material recycling, battery reuse and other fields.

It is reported that the total subscribed capital of Yibin Chendao New Energy is RMB 340.1 million, and the company's wholly-owned subsidiary Ningbo Wending, as a limited partner, subscribed capital of RMB 1 billion. After the completion of this investment, the wholly-owned subsidiary of the company, Ningbo Wending, holds 29.40% of the subscribed capital of Yibin Chendao New Energy.

CATL stated that Sichuan is an important base for the western automotive industry, with a vast consumer market, strong industrial foundation, and strong technological innovation capabilities in the automotive field. This investment by the company is in line with the company's strategic development plan and will further improve the company's production capacity layout to meet the needs of future business development and market expansion.