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On September 13th, CATL announced that it had signed a cooperation agreement with Yichun Municipal Government. According to the cooperation agreement, CATL will build a CATL new lithium battery production and manufacturing base project in Yichun, with a planned land area of 1300 mu and a total investment of about 13.5 billion yuan.

It is worth mentioning that at the same time, CATL has also signed two other cooperation agreements in Yichun, including a cooperation agreement with Yichun Mining Company and a comprehensive strategic cooperation agreement with Hezhong New Energy Vehicles, aiming to deepen the upstream and downstream of the industrial chain.

On July 30th this year, CATL signed a strategic cooperation framework agreement with the Jiangxi Provincial Government and Yichun Municipal Government in Nanchang. The CATL new lithium battery production and manufacturing base project is planned to be located in Yichun. The signing of this contract marks a solid step forward in the cooperation between CATL and Yichun City, and is also an important measure for CATL's overall industrial chain layout. It is said that this move will further improve the company's production layout to meet its future business development and market expansion needs.

Based on the accelerated growth of downstream demand for power lithium batteries, the cost of lithium battery raw materials has risen sharply due to the mismatch between supply and demand. Especially for lithium resources, the newly increased production of overseas lithium resources is lower than expected, and the production cycle is difficult to solve the short-term supply dilemma. The supply of lithium resources is becoming increasingly tight. In this context, the demand for CATL to layout upstream lithium resources is very urgent.

The reason why CATL chose to launch the new lithium battery production and manufacturing base project in Yichun is not difficult to understand. Yichun is rich in lithium mica mineral resources. Investing in Yichun can achieve convenience in obtaining upstream lithium resources and reduce production and transportation costs. According to data, Yichun has the world's largest lithium mica mine, with a proven usable lithium oxide reserve of about 2.5 million tons. At the same time, the single purification technology for the one-step production of lithium carbonate from lepidolite continues to achieve breakthroughs, making the cost of extracting lithium from mica gradually decrease.

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