A groundbreaking ceremony for the new-energy battery project between SAIC Motor Corporation Limited and Contemporary Amperex Technology Co Ltd (CATL) took place in Liyang city, Jiangsu province, on June 19.

The project establishes production bases for batteries and battery systems, which are expected to promote the further transformation and upgrading of China’s automobile industry.

Occupying 133 hectares, the facilities are designed to produce a total power battery capacity of 36GWh. Costing approximately 10 billion yuan ($1.54 billion) in its first phase and occupying 53 hectares, the bases will start operations by the end of 2018 with a production capacity of 18GWh.

SAIC Motor and CATL established two companies: one to develop, produce and sell lithium ion batteries (with a registered capital of 2 billion yuan); the other to develop, produce and sell battery systems (with a registered capital of 300 million yuan).

SAIC Motor is China’s largest automobile enterprise. Ranking 41^st among Fortune’s Global 500, SAIC in 2016 sold 6.489 million vehicles and made an operating income of 756.416 billion yuan.

Guided by developments in technology, markets and industry, SAIC strives to advance and upgrade through electrification, interconnection, intelligence and sharing. Being the only automobile enterprise in China that produces vehicles powered by the dynamical systems of plug-in hybrid, pure electric and fuel cell power, SAIC has recently launched different models of new energy vehicles (NEVs) such as the Roewe eRX5 plug-in hybrid SUV, the pure electric Roewe ERX5 SUV and the fuel cell light bus Maxus FCV80. The company plans to invest more than 20 billion yuan in the new energy field during the years of the 13^th Five-Year Plan (2016-2020). More than 30 NEVs will be launched during the period and annual sales of NEVs are expected to exceed 600,000 by 2020.

Founded in 2011, CATL is the biggest battery manufacturer in China. Having established a system to develop and produce power batteries and energy storage batteries, CATL also built a complete industrial chain covering all aspects of material, cell, battery systems and recycling. Its products boast the advantages of fast charging, ultra-high-energy density, long cycle life, high reliability and high environmental adaptability. In 2016, CATL produced an energy capability of 6.8GWh, establishing it as a major vehicle battery provider.

SAIC Motor and CATL share similar development concepts, primarily to regard innovation as orientation. This cooperative effort will create new highlights and utilize the attributes of each company to achieve better battery production for NEVs and the promotion of a green lifestyle and low-carbon transportation.

SAIC Motor aims to grow into a globally renowned auto enterprise through sound investment, accelerated industrial expansion and stronger cooperation with other enterprises, all of which will assist the development of China’s auto industry.