Contemporary Amperex Technology Co. Limited (CATL) has inaugurated its first battery manufacturing facility in northern China — a strategic move reflecting the accelerating regional demand for electric vehicle (EV) batteries and energy storage solutions.
Located in Yanzhou district, Jining, Shandong province, this new base represents CATL’s largest battery production site by planned capacity, underscoring the company’s aggressive expansion to consolidate market dominance amid intensifying global competition.
The initial phase of the Yanzhou facility, now operational, boasts an annual production capacity of 60 gigawatt-hours (GWh). Spanning 530,000 square meters of land with 520,000 square meters of built-up factory and residential infrastructure, this phase marks a substantial scale-up in CATL’s manufacturing footprint. Subsequent phases slated for later this year and next are poised to elevate the complex into a “world-leading new energy battery cluster,” with total investments nearing RMB 100 billion (approximately $14 billion).
This capacity surge aligns with verified market data illustrating CATL’s robust sales trajectory. In the first quarter of 2025, CATL installed 84.9 GWh of EV batteries globally — a 40.2% increase over the 60.6 GWh installed in Q1 2024, according to South Korean market analyst SNE Research. This volume represents a commanding 38.3% share of the global power battery market, sustaining CATL’s position at the forefront of the industry. Notably, in April 2025 alone, CATL secured a 39.44% market share in China, delivering 21.20 GWh of batteries, as reported by the China Automotive Battery Innovation Alliance (CABIA).
Despite these impressive figures, the scale of CATL’s expansion reflects not only growing demand but also the pressing challenges of supply chain resilience and regional logistics. By establishing a northern China hub, CATL aims to reduce transportation lead times and costs, thereby improving service for automakers and energy storage clients in this industrially vital region.
CATL’s approach also emphasizes environmental and technological synergies. The company has entered collaborative agreements with Shandong provincial authorities to integrate its facility within a planned zero-carbon city in Jining and to promote battery swap infrastructure via partnerships with the Shandong Department of Transportation. These initiatives signal CATL’s intent to advance beyond battery manufacturing toward ecosystem development supporting sustainability and urban energy transformation.
While CATL’s aggressive capacity build-out addresses immediate supply-demand dynamics, the broader challenge remains integrating next-generation battery chemistries, scaling recycling technologies, and mitigating environmental impacts throughout the battery lifecycle — factors critical to sustaining market leadership in an increasingly scrutinized industry.
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