Quick Takeaways
- CATL lithium battery plant is set to anchor a new phase of green manufacturing cooperation in Yunnan.
- The agreement aligns regional resource strengths with CATL’s long-term zero-carbon strategy.
Contemporary Amperex Technology Co., Ltd. has signed a tripartite strategic cooperation agreement with the Kunming authorities and the Dianzhong New Area authorities, deepening collaboration across new energy batteries, green energy, green transportation, and the low-altitude economy. The partnership outlines plans for a CATL lithium battery plant in Dianzhong New Area, Yunnan, with groundbreaking scheduled for the first quarter of 2026.
Strategic expansion of green manufacturing in Yunnan
The planned manufacturing site will focus on lithium battery production using intelligent and environmentally optimized processes. The project reflects CATL’s intent to scale advanced battery manufacturing while aligning new capacity with regional sustainability goals and clean power availability. Short development timelines indicate strong institutional support and execution readiness.
This agreement builds on an existing relationship between CATL and local authorities. The company established a new energy technology subsidiary in Anning in December 2022, laying the groundwork for broader industrial cooperation and localized supply chain development. That earlier move positioned Yunnan as a strategic base for CATL’s western China expansion.
Alignment with CATL’s zero-carbon roadmap
In 2023, CATL released a zero-carbon strategy that set clear milestones: achieving carbon neutrality in core operations by 2025 and extending neutrality across its entire value chain by 2035. These targets have since guided investment decisions, site selection, and technology deployment across the company’s manufacturing network.
In September 2024, CATL further advanced this approach by proposing the concept of “new zero-carbon infrastructure.” The initiative aims to enable industrial parks to directly access zero-carbon green electricity, reducing indirect emissions while stabilizing long-term energy costs for large-scale battery production facilities.
Leveraging regional resources for industrial clustering
Under the latest agreement, the three parties plan to leverage Yunnan’s resource advantages, including aluminum, phosphorus, lithium, and abundant green electricity. Integrating these inputs locally is expected to strengthen production support capabilities, shorten supply chains, and improve overall industrial efficiency.
The collaboration is also designed to enhance industrial chain agglomeration, attracting related upstream and downstream enterprises. By combining green energy availability with advanced manufacturing, the project is positioned to support China’s broader goals of carbon peaking and carbon neutrality while reinforcing Yunnan’s role in the national new energy landscape.
Strategic expansion of green manufacturing in Yunnan
The planned manufacturing site will focus on lithium battery production using intelligent and environmentally optimized processes. The project reflects CATL’s intent to scale advanced battery manufacturing while aligning new capacity with regional sustainability goals and clean power availability. Short development timelines indicate strong institutional support and execution readiness.
This agreement builds on an existing relationship between CATL and local authorities. The company established a new energy technology subsidiary in Anning in December 2022, laying the groundwork for broader industrial cooperation and localized supply chain development. That earlier move positioned Yunnan as a strategic base for CATL’s western China expansion.
Alignment with CATL’s zero-carbon roadmap
In 2023, CATL released a zero-carbon strategy that set clear milestones: achieving carbon neutrality in core operations by 2025 and extending neutrality across its entire value chain by 2035. These targets have since guided investment decisions, site selection, and technology deployment across the company’s manufacturing network.
In September 2024, CATL further advanced this approach by proposing the concept of “new zero-carbon infrastructure.” The initiative aims to enable industrial parks to directly access zero-carbon green electricity, reducing indirect emissions while stabilizing long-term energy costs for large-scale battery production facilities.
Leveraging regional resources for industrial clustering
Under the latest agreement, the three parties plan to leverage Yunnan’s resource advantages, including aluminum, phosphorus, lithium, and abundant green electricity. Integrating these inputs locally is expected to strengthen production support capabilities, shorten supply chains, and improve overall industrial efficiency.
The collaboration is also designed to enhance industrial chain agglomeration, attracting related upstream and downstream enterprises. By combining green energy availability with advanced manufacturing, the project is positioned to support China’s broader goals of carbon peaking and carbon neutrality while reinforcing Yunnan’s role in the national new energy landscape.
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