CATL-GAC power battery base start operation 10 months later than expected

Shanghai (Gasgoo)- The power battery manufacturing base jointly built by CATL and GAC Group fails to be completed on schedule for the reason of coronavirus pandemic.

Involving a total investment of 4.226 billion yuan ($647 million), the production facility was supposed to be finished at the end of 2020. “As the construction plan was adjusted according to market demands and the project was affected by the virus outbreak, the first phase of CATL-GAC power battery base is set to go into operation in October 2021,” said GAC Group after being reached for comment.

Photo credit: CATL

In July 2018, the Guangzhou-based automaker and the battery giant entered into an agreement to build two joint ventures focusing on power battery businesses.

To be specific, GAC-CATL Power Battery System Co.,Ltd. engages in the development, production and sale of power battery system. With a registered capital of 100 million yuan ($15.31 million), the joint venture is held as to 51% by GAC Group and 49% by CATL.

The other joint venture, namely CATL-GAC Power Battery Co.,Ltd, is dedicated to developing, producing and selling lithium ion batteries, power batteries and energy storage batteries with ultra-large capacity. With 1 billion yuan ($153.095 million) in registered capital, it is structured as a 51-49 partnership between CATL and GAC Group.

Both parent companies celebrated the first spade cut for the CATL-GAC power battery factory in Guangzhou around two years ago.

The power battery base is being advanced much slower than expected. By the end of June 2020, only 86 million yuan ($13.166 million) had been plowed into the project, accounting for 2.02% of the due investment, according to CATL.