Chinese battery manufacturer CALB is aggressively ramping up its production capacity to meet the surging global demand for electric vehicle (EV) batteries and energy storage solutions. The company has announced a significant $1.67 billion (CNY 12 billion) investment in the second phase of its Chengdu facility, aiming to add 30 GWh of annual production capacity.

The expansion will bring the total capacity of the Chengdu site to 50 GWh, up from the current 20 GWh achieved in the first phase completed in September 2022. CALB envisions Chengdu as a pivotal industrial hub for advanced battery production, incorporating structural component warehouses and finished product storage to streamline its operations. Production from the new lines is expected to commence in the second quarter of 2026, positioning CALB to capitalize on the rapidly growing lithium-ion battery market.

This substantial investment reflects CALB's strategic response to the evolving dynamics of the EV and energy storage sectors. While the company remains a leading lithium battery producer, its 2024 financial results highlighted a mixed performance. EV battery installations saw a 16.6% increase to 39.4 GWh, but declining battery prices led to a 12.1% drop in EV-related sales revenue, falling to $2.7 billion (CNY 19.55 billion).

The robust growth in energy storage is fueled by strategic partnerships and significant contracts. CALB has secured deals with industry giants like Sungrow, including a 12.2 GWh cell supply agreement for projects in Saudi Arabia and Europe.

In addition to the Chengdu expansion, CALB is constructing a high-performance lithium battery plant in Xiamen, which will also contribute 30 GWh of annual capacity upon completion. The company's global footprint extends beyond China, with nine manufacturing bases including facilities in Thailand and plans for a €2 billion factory in Sines, Portugal.

The Portuguese plant, slated to commence operations by 2028, is expected to generate 1,800 direct jobs and potentially receive €350 million in incentives. This strategic move will solidify CALB's presence in the European market, aligning with the region's growing emphasis on electric vehicles and sustainable energy solutions.

CALB's aggressive expansion strategy, encompassing both domestic and international projects, underscores the company's commitment to meeting the escalating demand for advanced battery technologies. As governments and industries worldwide transition to electric vehicles and large-scale energy storage solutions, CALB is positioning itself as a key player in the global battery market.