CATL Signs Yunnan Lithium Battery Base Agreement, Construction Starts in Q1 2026

Edited by Greg From Gasgoo

Gasgoo Munich- Contemporary Amperex Technology Co. Limited (CATL) is accelerating its expansion drive. A flurry of power battery projects—both at home and abroad—are moving forward, while strategic partnerships with local governments are taking hold. The moves are designed to further solidify the company's global production footprint.

On January 27, the Kunming municipal government, the Yunnan Dianzhong New Area administrative committee, and CATL inked a tripartite strategic partnership. The agreement focuses on deepening collaboration across four key sectors: new energy batteries, green power, green transportation, and the low-altitude economy. Central to the deal is a plan to build a green smart manufacturing base for lithium batteries in the Dianzhong New Area, with construction slated to begin in the first quarter of 2026.

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Source: Yunnan Release

CATL’s global projects are entering critical phases. On January 15, the first production line equipment arrived at the company’s Indonesian power battery plant—a project involving China Construction Fourth Engineering Division—marking the transition from civil construction to equipment installation and commissioning. A day earlier, on January 14, the Phase II project of Changan-CATL (Shichang) was signed in Chongqing. A core strategic venture between CATL and Changan Automobile, the facility carries a total investment of roughly 5.5 billion yuan. Located in the Beibei section of the Sichuan-Chongqing Gaozhu New Area, it spans about 1,000 mu and is designed for 25 GWh of power battery capacity. Meanwhile, on January 8, the first piece of equipment entered the cell factory for the third phase of CATL’s Luoyang base in Henan. The Luoyang site is being built in four phases with a total investment of 28 billion yuan and a planned annual capacity of 120 GWh; Phase I and Phase II commenced operations in July 2024 and September 2025, respectively.

Data from the China Automotive Power Battery Industry Innovation Alliance shows that 2025 was a breakout year for China’s power battery sector, with core metrics—production, sales, installations, and exports—all posting explosive growth. Even as the industry scales up and competition intensifies, the dominance of the "dual kings" remains unshaken. CATL led the pack with a cumulative 333.57 GWh of installations in 2025, capturing 43.42% of the market. In December alone, it installed 45.71 GWh, boosting its monthly market share to 46.66%.

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