Electric car battery maker in China aims for global expansion

Technology - Mohit Shah - Dec 26,2016

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electric car battery maker in china aims for global expansion

 

Contemporary Amperex Technology Ltd (CATL) situated on the outskirts of Ningde (southeast China), is set to become a potential production leader in lithium-ion car batteries.

The headquarters of Contemporary Amperex Technology Ltd. is located in the Zhejiang province of China. This company is regarded as a hometown hero, which is viewed as a capable contender to become a national champion with strong expectations to place a tough challenge on an international level.

CATL deals in lithium-ion car batteries which are primarily used in electric cars. In the month of October, the second major funding session was completed. According to CEO Huang Shilin, this move has surged the company’s value to 80 billion yuan ($11.5 billion).

CATL is tagged as China's answer to South Korea's LG Chem Ltd and Japan's Panasonic Corp. It is interesting to known that, the firm is on a determined path of global expansion as the production capacity has tripled in the past year to match the rise in China's sales of electric cars.

If the company maintains its current pace, by 2020 CATL would easily generate another 30 billion to become an effective force in the global market for lithium-ion batteries. Huang also commented that, by 2020 he hoped the company can achieve “performance and price” sufficient enough to lead the world market.

Contemporary Amperex Technology Ltd. was found five years back and has already pushed its reach beyond the Chinese territory. The company has offices in Germany, Sweden and France; plans are also active for the setup of another factory in Europe.

These ambitious strategies, however, does involve a certain amount of risk considering dependence on government policy and frequently transforming technology. People think we're a big successful company, but we think we're in jeopardy every day," said by the marketing director, Neill Yang.

CATL has been nominated among the top three battery makers including Guoxuan and Lishen - for motivation under China's 13th Five-Year Plan, with the offering of around $15 million if the targets are met under the stated time period.