(Yicai) June 19 -- Chinese electric car battery giant Contemporary Amperex Technology has started building its first production facility in northern China, and its 14th altogether, to supply batteries to locally based auto manufacturers such as BAIC Group, Xiaomi Motors and Ideal Auto.

A groundbreaking ceremony was held in the Beijing Economic and Technological Development Zone yesterday. The zone, which has an annual output of CNY200 billion (USD27.5 billion), is home to many leading carmakers, such as Beijing Benz, BAIC and Xiaomi Motors, as well as almost 40 auto parts manufacturers not to mention key research hubs such as the Daimler Global R&D Center.

This is the eighth factory that CATL is building together with auto manufacturers, and BAIC and Xiaomi Motors all have stakes in the facility, according to a statement released by the Beijing Municipal Government and CATL yesterday. The Ningde-based firm holds a majority stake of 51 percent, three of BAIC’s subsidiaries own 39 percent, Xiaomi Motors hold 5 percent and the rest is held by a subsidiary of Beijing Energy Group.

The plant, which is situated next to Xiaomi Motor’s factory, is designed according to the highest zero carbon standards and will be constructed in two phases. It is expected to be put into production in 2026.

Although the investment amount was not mentioned, the land transfer documents from the Beijing government show that investment will not be less than CNY4 billion (USD551 million).

When fully up and running, the factory should have an output value of not less than CNY6 billion (USD826.9 million) a year, and will be paying at least CNY150 million (USD20.6 million) in taxes, according to the documents. No details of the production capacity were given.

The world’s biggest battery supplier currently has 11 factories in China, one in Erfurt, Germany and another in Debrecen, Hungary. Seven of these are joint venture plants with six Chinese automakers.

Editor: Kim Taylor