(Yicai Global) Feb. 26 -- A joint venture between Chinese auto giant SAIC Motor and Contemporary Amperex Technology will invest as much as CNY10.5 billion (USD1.6 billion) to double capacity at its electric car battery production base in Liyang, southeastern Jiangsu province, the world’s largest vehicle battery maker said yesterday.

The new extension at United Auto Battery’s plant will cover 59 hectares and lift production to 36 gigawatt hours, the parent firm said.

The JV, which is 51 percent owned by Ningde, southeastern Fujian province-based CATL, has already spent CNY10 billion on the first phase. Completed in 2018, it has a capacity of 18 GWh and covers an area of 53 hectares.

CATL has been ramping up production across the country recently as the rapid growth of the new energy vehicle sector fuels demand. The company plans to spend CNY10 billion on a project in Yibin, southwestern Sichuan province, CNY17 billion on a new power lithium-ion plant in its home base of Ningde, CNY12 billion on a factory in Zhaoqing, southeastern Guangdong province and CNY12 billion to lift capacity at a different production base it owns in Liyang.

Another JV it runs with carmaker FAW Group will invest CNY5 billion to expand its battery plant in Ningde.

Editor: Kim Taylor