Chinese electric vehicle battery giant Contemporary Amperex Technology is expected to start construction at a new plant in Beijing this year, according to a recent spoiler by the local development and reform commission.

Chinese EV makers Li Auto and Xiaomi Automobile will help Beijing's auto sector become a pillar for the city, Beijing Daily reported on Jan. 12, citing the Beijing Municipal Commission of Development and Reform. The Chinese capital city plans to put Li Auto's car part production base into operation and kick off construction at CATL's local plant this year, the report added.

No information is available for disclosure so far, CATL told the Paper yesterday about the report of the Beijing plant.

Industry experts believe the main reasons CATL has not yet released any information about the new plant are that Beijing is China's political and cultural center and that the company has yet to agree on some matters with the local government, The Paper reported. Another reason could be that CATL is experiencing overcapacity, so the news of a new plant could draw unwanted attention.

The Ningde-based firm has 13 factories worldwide, with a total annual production capacity of 254 gigawatt-hours and an actual battery system production capacity of 154 GWh in the first half of last year, achieving a capacity utilization rate of 61 percent, far below the figure of 80 percent a year earlier.

Beijing is home to over 300 companies engaged in the new energy vehicle industry, including BAIC Group, Li Auto, and Xiaomi Auto, most of which are CATL's clients, experts noted, adding that building a plant in Beijing to save time and costs when delivering batteries to local carmakers would be normal.

Resources like land, power, and water are not an issue in Beijing, the experts pointed out. For example, large pieces of land are idle in Beijing's Shunyi district, they noted.