Chinese electric vehicle battery giant CATL has announced plans to raise Yuan 58.2 billion ($9 billion) via a private placement to fund six projects to increase the production of lithium-ion batteries.
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The company said in a translated filing to the Shenzhen Stock Exchange late Aug. 12 that the funds, which would be raised by placing 232.9 million shares with institutional investors, would also be used to develop battery technologies for energy storage facilities and as working capital.
The six projects will include the construction of new gigafactories in China's Fujian, Zhejiang and Guangdong provinces, as well as the expansion of existing plants, CATL said.
The need for more gigafactories globally is being driven by greater demand for EVs.
According to S&P Global Platts Analytics, in China alone, plug-in light duty EV sales are expected to rise to 4.4 million units in 2025, up from 1.2 million in 2020, and up to 9.7 million vehicles in 2030.
In July, CATL revealed its first-generation sodium-ion battery, which it said would "provide a new solution for the use of clean energy and transportation electrification, thus promoting the early realization of the goal of carbon neutrality."