On the evening of December 29th, CATL announced in three notices on the Shenzhen Stock Exchange that it will invest to expand its lithium-ion battery production bases in Jiangsu and Yibin, and build a new one in Fuding.
CATL stated in the announcement that the construction and expansion of its production bases are of great significance to the company’s long-term stable development, as they aim to further improve the company’s capacity layout, meet the future business development, and expand the market.
According to CATL, the competition in the market of lithium-ion power and energy storage batteries is becoming increasingly fierce due to the promotion of new energy vehicles, energy storage, and relevant industrial policies. The construction and expansion of production bases will help the company take a leading position in the competition, but the changes in market supply and demand may also bring risks to the capacity expansion.
Subsequently, CICC predicted that CATL’s new total capacity could reach 120-150 GWH in the next 2 to 4 years. Taking into account the industry’s prosperity, CICC raised CATL’s target price by 50% to RMB 450.
As of noon on December 31st, CATL’s stock price was RMB 351.11 per share, with a total market value of RMB 817.902 billion. Since the beginning of this year, CATL’s cumulative increase is 218%.
🔗Information Source: Shenzhen Stock Exchange
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