The CATL has made great moves!

On the evening of July 21, CATL disclosed two major news: the investment of no more than 14 billion yuan to expand production capacity, and a large order for lithium iron phosphate batteries from Ford Motor.

Flush data shows that as of the close on July 21, Ningde Times reported 521 yuan per share, down 0.95%, with a total market value of 1.3 trillion yuan.

No more than 14 billion yuan to expand production

On the evening of July 21, CATL announced that with the rapid development of new energy industries at home and abroad, the market for power batteries and energy storage industries continued to grow. Invest in the construction of the Jining New Energy Battery Industrial Base Project with a total investment of no more than RMB 14 billion.

At the same time, Ningde Times announced that it signed a strategic cooperation framework agreement with the Shandong Provincial Government, and signed an investment agreement and a power exchange network investment agreement with the Jining Municipal Government. Influential new energy industry cluster.

Ningde Times stated in the announcement that the company's investment in the construction of a production base is in line with the company's strategic development plan, and will further improve the company's production capacity layout to meet the company's future business development and market expansion needs. It is of great significance to promote the company's long-term and stable development.

CATL's accelerated production expansion stems from the rapid development of the new energy vehicle market. According to the data of the China Automobile Association, from January to June, the production and sales of new energy vehicles completed 2.661 million and 2.6 million respectively, an increase of 1.2 times year-on-year, and the market penetration rate was 21.6%. In June, the production and sales of new energy vehicles were 590,000 and 596,000 respectively, an increase of 1.3 times year-on-year.

In this context, the market demand for power batteries has increased significantly. Data from the China Automotive Power Battery Industry Innovation Alliance shows that from January to June, the cumulative installed capacity of power batteries in my country was 110.1GWh, a year-on-year increase of 109.8%, of which ternary batteries were 45.6GWh, accounting for 41.4% of the total installed capacity; lithium iron phosphate batteries 64.4% , accounting for 58.5% of the total installed volume. In June, the installed capacity of power batteries was 27GWh, a year-on-year increase of 143.3% and a month-on-month increase of 45.5%.

Yingda Securities believes that considering the domestic wind and solar energy storage policy and the skyrocketing demand for installed capacity of overseas energy storage power stations, the power-side energy storage will continue to explode, superimposing the energy storage demand in other fields such as communications and data centers. Annual shipments will reach 36GWh, 50GWh, and 66GWh.

Partnership with Ford

Behind CATL's tens of billions of dollars to expand production, it is supported by a steady stream of orders from car companies.

On the same day, CATL announced that the company signed a memorandum of understanding with Ford Motor Company (“Ford”) to establish a global strategic partnership, covering the supply of power batteries in China, Europe and North America.

According to a separate agreement signed by the two parties, CATL will also supply lithium iron phosphate battery packs for the Ford Mustang Mach-E in North America from next year, and supply phosphoric acid for the Ford pure electric pickup F-150 Lightning in North America from the beginning of 2024. Iron lithium battery pack.

According to reports, thanks to the excellent characteristics of the Ningde era lithium iron phosphate battery system in terms of battery life and thermal stability, the above-mentioned Ford models will have excellent performance in environmental adaptability.

The research report of CITIC Securities pointed out that from upstream nickel, cobalt, lithium and other metal resources required for the production of power batteries, to the four key raw materials cathode, anode, diaphragm, electrolyte and lithium battery equipment, and then to mid-stream and downstream battery manufacturing, charging piles, In the fields of complete vehicles and automotive chips, CATL has further promoted the integrated layout of the industrial chain. In the future, the company is not only a lithium battery manufacturer, but is expected to grow into a world-class supplier of comprehensive energy solutions and services.