CATL-Changan EV Battery Joint Venture Forms New CNY 1 Billion Subsidiary in Chongqing

According to multiple press releases dated February 9, CATL-Changan EV Battery has announced the formation of a wholly owned subsidiary in Chongqing with a registered capital of CNY 1 billion. The development represents a calculated capacity expansion initiative within China’s rapidly scaling electric vehicle battery ecosystem, enabling tighter manufacturing control, regional supply optimization, and enhanced localization of lithium-ion battery production. Backed by major automotive and battery stakeholders, the new entity is structured to reinforce upstream–downstream integration, improve supply chain responsiveness, and accelerate deployment of next-generation energy storage technologies.

CATL-Changan EV Battery Expands Strategic Footprint

The newly incorporated company, named CATL-Changan (Chongqing) EV Battery Co., Ltd., operates as a fully owned subsidiary of CATL-Changan EV Battery, providing organizational autonomy while maintaining strategic alignment with the parent joint venture. The joint venture itself brings together Contemporary Amperex Technology Co., Ltd. (CATL), Deepal Automotive Technology Co., Ltd., and Chongqing Changan Automobile Co., Ltd., integrating cell technology leadership, vehicle engineering capabilities, and regional manufacturing strength within a unified industrial framework.
This expansion strengthens geographical proximity to vehicle assembly operations in Chongqing, enabling synchronized battery pack integration, reduced logistics latency, and improved just-in-time manufacturing efficiency. The localized structure enhances production scalability while supporting rapid adaptation to evolving EV platform architectures and battery pack configurations.

Business Scope and Operational Focus

The newly established subsidiary will execute an integrated operational model spanning cell manufacturing, battery system commercialization, advanced research, and electronics-grade material development. The scope aligns with sustained growth in domestic EV demand and increasing requirements for high-energy-density lithium-ion battery solutions across passenger vehicle platforms.

Battery Manufacturing and Sales

• Manufacturing and commercial distribution of lithium-ion battery cells and systems for electric passenger vehicles and emerging mobility applications

• Capacity scaling to support platform-level electrification strategies and modular battery architectures

• Enhancement of supply stability, cost optimization, and localized procurement efficiencies for affiliated automotive brands

The production strategy is expected to incorporate advanced cell chemistries, automated assembly lines, and quality traceability systems to meet evolving safety, durability, and energy density benchmarks.

R&D of Emerging Energy Technologies

• Research and development in next-generation battery chemistries and material compositions

• Optimization of energy density, thermal stability, and charge–discharge cycle performance

• Lifecycle enhancement strategies including degradation modeling and battery management system compatibility improvements

Strengthened EV battery R&D capabilities position the joint venture to respond to competitive pressures driven by fast-charging advancements, structural battery integration, and higher efficiency powertrain requirements.

Electronics-Dedicated Materials Manufacturing

• Manufacture and commercialization of electronics-dedicated materials supporting battery and EV subsystem applications

• Vertical integration of critical battery materials to improve quality control and performance differentiation

• Development of materials platforms enabling improved reliability, conductivity, and system-level efficiency

Control over battery materials production enhances traceability and reduces dependency on external suppliers, contributing to improved cost structures and technological consistency across vehicle programs.

Implications for the Chongqing EV Industry

Chongqing continues to strengthen its position as a strategic EV manufacturing cluster supported by mature automotive infrastructure and an expanding supplier ecosystem. The establishment of a CNY 1 billion subsidiary reinforces regional battery manufacturing depth, increases localized value addition, and supports the scaling of electrified passenger vehicle production.
For Changan Auto and affiliated brands, the initiative enhances battery sourcing security and accelerates integration of advanced lithium-ion solutions into future EV platforms. For CATL, the move consolidates regional manufacturing presence while enabling tighter alignment between cell production and vehicle deployment cycles. Collectively, the expansion underscores the strategic importance of vertically integrated joint ventures in advancing EV battery manufacturing, emerging energy technologies, and sustainable electrified mobility within China’s competitive automotive landscape.