CATL to grow even larger.
Chinese EV battery provider Contemporary Amperex Technology Limited (CATL) announced on February 25 that it has signed a five-year agreement to deepen the cooperation with BAIC BJEV and Beijing Pride Power System Technology Limited (Pride Power).
According to the announcement, CATL and Pride Power will provide BAIC BJEV with power battery systems in the next five years. Besides, Pride Power should offer the products to the EV maker at a bargain price and CATL need to supply an agreed monthly volume of battery, while BAIC BJEV is supposed to give CATL and Pride Power some procurement shares no less than a certain percentage of its annual battery procurement volume in 2019.
The agreement also says if CATL satisfies BAIC BJEV's battery needs on a monthly basis, the EV maker and Pride Power agree to prepay a certain amount of money to CATL during the strategic cooperation period based on some conditions approved by all three parties. This prepayment should be fully offset against the money payable by the end of December every year.
Moreover, under the strengthened collaboration, CATL and BAIC BJEV will jointly build a R&D team to work on developing new types of power battery.
Earlier this month, CATL claimed that it will build the world's biggest battery factory in Erfurt, Germany and planned capacity of up to 100GWh. In addition, during the Spring Festival, the battery manufacturer announced a partnership with Honda, saying it will offer 56GWh of lithium-ion power battery to the Japanese automaker by 2027.