CATL Invests CNY 548 Mn on New Energy Fund

Industrials Author: Fuller Wang Feb 11, 2021 02:33 PM (GMT+8)

The leading energy battery manufacturer is mapping out its full-coverage strategy on the EV supply chain.

Ningde Era

On February 10, 2021, CATL announces that the company will cooperate with a number of companies to establish Fujian Contemporary Eastern Min New Energy Fund (Chinese: 福建时代闽东新能源). The company will be mainly focusing on investing in EV-related companies, including lithium-ion batteries and materials, intelligent manufacturing, energy storage, intelligent driving, renewable energy, information technology, and artificial intelligence.

 The new company is established with a total capital contribution of 2.5 billion, of which CATL has contributed CNY 548 million. After the completion of the investment, Qingdao SAIC is expected to hold 40% of the shares of the company, while CATL and its subsidiaries hold 21.96% of it. CATL said that the main purpose of the investment is to further improve the industrial layout with the help of the advantages of the new fund.

 As a leader in the global power battery market, according to SNE research data, CATL ranked first in the world for four consecutive years, with a market share of 24.82% and 34GWh power battery installed capacity. The company's financial report is also favorable. In the third quarter of this year, CATL achieved a net profit of CNY 1.42 billion, up 4.24% year on year. At the end of February 10, CATL closed at CNY 412.66 per share, up 0.6% compared with the last close price.