CATL accelerates capacity build-out with new manufacturing project finding home in Yunan province

Monika From Gasgoo

Gasgoo Munich- On January 27, CATL entered into a tripartite strategic cooperation agreement with the Kunming municipal government and the administrative committee of Yunnan Dianzhong New Area.

Image sourec: WeChat account " Yunan Release"

The partnership will focus on deepening collaboration across four areas: new energy batteries, green energy, sustainable transportation and the low-altitude economy. As part of the deal, the parties plan to develop a green and intelligent lithium battery manufacturing base in Dianzhong New Area, with construction expected to begin in the first quarter of 2026.

In parallel, a number of CATL's domestic and overseas projects have moved into critical execution phases. On January 15, equipment for the first cell production line was delivered to CATL's power battery project in Indonesia, built with the participation of China Construction Fourth Engineering Division, marking the transition from civil construction to equipment installation and commissioning.

A day earlier, CATL-Change struck a deal for its second-phase power battery project. The project carries an investment of about 5.5 billion yuan, covers roughly 1,000 mu of land in the Beibei section of the Sichuan–Chongqing Gaozhu New Area, and is designed to deliver 25 GWh of annual battery capacity.

On January 8, the first piece of equipment entered the 3rd-phase cell factory of CATL's Luoyang base in Henan province, also signaling the start of installation and commissioning.

The Luoyang base is being developed in four phases with a total investment of 28 billion yuan and a planned annual capacity of 120 GWh; phases one and two came online in July 2024 and September 2025, respectively.

Industry data from the China Automotive Power Battery Industry Innovation Alliance indicate that 2025 marked a year of broad-based expansion for China's power battery sector, with production, sales, installed capacity and exports all posting sharp gains. CATL still held its leading position during the year, with cumulative installed capacity reaching 333.57 GWh, accounting for 43.42% of the market. In December 2025 alone, its installed volume climbed to 45.71 GWh, pushing its monthly market share up to 46.66%.

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