CATL Shandong Battery Plant Launches First Phase of Production

CATL

China’s leading battery manufacturer CATL has launched the first phase of its new Shandong battery plant, marking a major step in regional capacity expansion. The plant, located in Jining city, is CATL’s first battery production complex in north China and the largest to date in the region. With a capacity of 60GWh per year for power and energy storage batteries, the CATL Shandong battery plant reinforces the company’s strategy to meet surging global demand for EV and grid-scale storage systems.

New Capacity Supports TWh Ambitions and Market Dominance

The second and third phases of the Shandong facility are scheduled to be commissioned in 2024 and 2025, though capacity details remain undisclosed. Meanwhile, CATL is also constructing a 40GWh/year plant in Dongying, China’s largest oil refining hub. These developments support CATL’s plan to add 219GWh of new capacity globally. As a result, the company’s total production is forecast to reach between 700GWh and 1,000GWh by 2025, potentially making CATL the first TWh-scale battery manufacturer in the world, according to market analysts.

Soaring Battery Demand Drives Upstream Lithium Demand

According to IEA data, global demand for EV and energy storage batteries approached 1TWh in 2024. This growth continues to drive upstream consumption of lithium carbonate, as each GWh of lithium iron phosphate (LFP) battery production requires roughly 600 tonnes of lithium carbonate equivalent. As the CATL Shandong battery plant and others ramp up production, the lithium supply chain will face additional pressure, reinforcing the strategic importance of vertical integration and raw material security across the battery industry.

The Metalnomist Commentary

CATL’s aggressive expansion in Shandong underscores its intent to dominate both EV and grid-scale storage markets. As TWh-level production nears, supply chain resilience—particularly in lithium—will determine the company’s long-term cost advantage and market leadership.