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Chinese battery manufacturer and Tesla supplier CATL is planning to build a large new plant in Shanghai, close to US manufacturer Giga Shanghai. The expansion of the battery manufacturer in the area goes hand in hand with the expansion of Tesla's manufacturing facilities.

Continuing its rapid expansion pace to solidify its leadership as the world's #1 battery supplier, CATL is planning a new manufacturing facility in Shanghai, two people familiar with the situation said, according to Reuters. Based on the information received, this will be a huge plant, capable of producing 80 GWh of battery cells per year. This production volume will exceed 69.1 GWh of current production capacity, as well as the factory, which is under construction and will produce 77.5 GWh of battery per year.

It is likely that the location of the battery manufacturer's plant in Shanghai is due to the fact that the factory of the world's largest EV manufacturer, Tesla, is located there. Giga Shanghai already has an installed capacity of 450,000 vehicles per year and continues to expand. Tesla's China production site could potentially produce about one million vehicles per year after the planned expansion phases are over. In 2020, CATL began supplying batteries to the American manufacturer and it seems now intends to expand the cooperation.

The Shanghai factory will also allow CATL to attract a larger and more diversified talent pool than its headquarters in Ningde, southeast China, sources said. According to the information, the manufacturer is already in talks with the Shanghai government to build a plant, however it is currently unclear when a final agreement can be reached or when CATL hopes to launch the new plant.

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