CATL to Invest Up to USD2.7 Billion in NEV Sector, Build USD1.2 Billion Plant With Geely
Tang Shihua
DATE:  Aug 12 2020
/ SOURCE:  Yicai
CATL to Invest Up to USD2.7 Billion in NEV Sector, Build USD1.2 Billion Plant With Geely CATL to Invest Up to USD2.7 Billion in NEV Sector, Build USD1.2 Billion Plant With Geely

(Yicai Global) Aug. 12 -- China’s Contemporary Amperex Technology, the world’s biggest power battery maker, plans to invest as much as CNY19.1 billion (USD2.7 billion) inthe stocks and bonds of listednew energy vehiclefirms and construct a battery factory with carmaker Geely Automobile Holdings.

The stock and bond purchases, already approved by CATL’s board and scheduled for the next 12 months, are equal to half of its unaudited net assets last year, the Ningde-based company said in a statement yesterday. More than 10 percent of that will likely go overseas.

The goal is to enhance business cooperation throughout the supply chain and improve the company's competitiveness, it added.

CATL also said it is joining hands with Hangzhou-basedGeely to build a CNY8 billion (USD1.2 billion) battery plant in Sichuan province. Work on the 33.3-hectare facility should take up to 26 months, CATL said, without disclosing the planned capacity.

CATL Geely Power Battery, a joint venture between the battery firm and an affiliate of the automaker, will oversee the project’s completion. CATL has 51 percent of the new firm’s equity, while Jirun Automobile owns the remainder.

Shares of CATL [SHE:300750] closed 1.4 percent lower today at CNY195.73 (USD28.17), about the same decline as the benchmark Shenzhen Component Index. Geely [HKG:0175] rose 0.6 percent in Hong Kong to HKD16.98 (USD2.19).

Last week, CATLannounced an upgrade of its partnership with Mercedes-Benz that aims to give theGerman carmaker’s new EQS luxury sedanmileage of over 700 kilometers and double the charging speed of current models.

The new arrangement includes the full range of battery technologies, including cells and entire battery systems, along with the shared development of cutting-edge technology,CATLsaid in a statement on Aug. 5.

Editor: Emmi Laine

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Keywords:   Equity Investment,Power Battery,Joint Venture,Geely,CATL