CATL to Build Lithium Battery Plant in China's Oil Hub Dongying

CATL

New 40GWh facility aligns with China’s decarbonisation and vehicle electrification goals

China’s leading battery manufacturer, CATL, has announced plans to build a lithium-ion battery plant in Dongying, Shandong province, marking a strategic move to transform China’s largest oil refining city into a zero-carbon hub. The new factory will have a production capacity of 40GWh per year in its initial phase.

CATL signed the agreement with Dongying’s municipal government this week. While the timeline for construction and commissioning remains undisclosed, the company said additional capacity could be developed in a second phase, depending on market conditions.

Supporting Local Electrification and Zero-Carbon Goals

CATL will also participate in Dongying’s public transport electrification, providing charging infrastructure and battery exchange systems. The company aims to supply batteries for passenger cars, freight vehicles, trucks, buses, and ships, making Dongying a demonstration city for zero-carbon mobility.

This initiative aligns with China’s broader decarbonisation strategy, with Dongying’s transformation representing a symbolic shift from oil to clean energy.

CATL Eyes Global Expansion Amid Soaring Battery Demand

CATL’s battery sales rose 22% in 2024, reaching 475GWh, fueled by growing demand in the EV and energy storage sectors. The company operates 13 battery bases worldwide and is adding 219GWh of new capacity across China, Germany, Hungary, and Spain.

By 2025, CATL aims to reach 700–1,000GWh in total capacity, making it the first TWh-level battery manufacturer globally.

China’s NEV sales have surged, reaching 40.9% of total auto sales in 2024. According to the China Association of Automobile Manufacturers, NEV sales may hit 16 million units in 2025 — nearly half the total market.