CATL and Dongying, Shandong Province, Enter into Strategic Cooperation Agreement

DONGYING, China, March 19, 2025 — The Dongying Municipal People’s Government of Shandong Province and CATL (Contemporary Amperex Technology Co., Limited) formalized a strategic partnership on March 15 in Jinan, Shandong. The collaboration will focus on zero-carbon city development, expanding the use of zero-carbon technologies, constructing a green, intelligent lithium battery production center, and supporting the transition of industries to new energy sources. The goal is to create a leading, demonstrative zero-carbon industrial park powered primarily by green energy.

The agreement outlines CATL’s plan to construct an advanced lithium battery manufacturing facility in Kenli District, Dongying, adhering to “zero-carbon factory + lighthouse factory” standards. The first phase will have a production capacity of 40GWh, with plans for a second-phase expansion that will include high-end, green, and low-carbon lithium battery raw material projects. This initiative aims to establish a comprehensive green manufacturing hub with an annual output value exceeding 100 billion yuan.

Dongying possesses abundant renewable energy resources, including wind, solar, and geothermal power. The city has been actively encouraging the large-scale development of clean energy and building a green, low-carbon energy consumption framework to establish a modern energy economy demonstration zone. Dongying’s installed renewable energy capacity has reached 8.4254 million kW, which is 1.6 times its coal power capacity. Its new energy storage installations total 1.27 million kW, representing one-sixth of Shandong province’s total. By the end of the 14th Five-Year Plan, Dongying’s renewable energy capacity is projected to exceed 10 million kW, enabling the creation of a large-scale integrated wind-solar-storage energy base, providing strong green energy support for CATL’s zero-carbon initiatives.

As a major petroleum industry city in China, Dongying accounts for 80% of the crude oil production and petroleum geological reserves of the Shengli Oilfield and is a key production base for CNOOC’s Bohai Oilfield. The city has developed a strong industrial cluster focused on petrochemicals, rubber tires, petroleum equipment, and new materials. This solid industrial base provides favorable conditions for advancing zero-carbon initiatives, including zero-carbon oilfields, zero-carbon chemical zones, and zero-carbon towns, and facilitates the transition of industries to renewable energy.

Strategically located at the mouth of the Yellow River, Dongying serves as an important gateway connecting the Bohai Rim and the Yellow River Basin. As a key coastal port city within the Shandong Peninsula urban cluster and a part of the economic circle of the provincial capital, Dongying offers significant logistical advantages. The establishment of CATL’s project in Dongying will help it expand its reach to key markets, including the Beijing-Tianjin-Hebei region and the Shandong-Henan-Anhui economic corridor, further strengthening the supply chain for downstream industries.

Source: Dongying Municipal People’s Government

Contact person: Ms. Zhang, Tel: 86-10-63074558

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