Home » CALB signs deal to build new bases in Guangdong, expected to shorten battery supply to XPeng

CALB signs deal to build new bases in Guangdong, expected to shorten battery supply to XPeng

by SEP Editor
(Photo credit:calb-tech.com)

CALB, a Chinese power battery company, signed deals with XPeng to become its supplier. This deal allows it to build new production bases in two cities in southern China’s Guangdong province.

CALB currently has seven production bases in Changzhou, Luoyang, Xiamen, Chengdu, Wuhan, Hefei, and Heilongjiang, with a planned capacity of 200 GWh for 2022.

It expected its capacity to exceed 500 GWh by 2025, an upward revision from the 300 GWh announced in June. 

A statement released on January 26th showed that this contract with the Government of Huadu District in Guangzhou allows CALB to build a local site with a planned annual capacity of 50 GWh to produce power batteries and energy storage systems. 

It will be the first major power battery base built in Guangzhou and will be built in two phases, CALB said.

The other contract CALB signed is with the Jiangmen city government in Guangdong on January 26. This allows them to build a battery production site in the city with a planned annual capacity of 50 GWh.

Why would Xpeng choose CALB?

XPeng’s previous main battery supplier was China’s largest power battery maker, Ningde city, Fujian province-based CATL.

Before, there were rumours that Xpeng delayed turning in their products. 

Xpeng responded that lithium battery’s supply is under shortage for the whole car industry because of COVID-19’s influence. This brought undecided factors towards Xpeng P7’s production, causing 480 car orders to not be done in the restricted time. 

The supply chain of components needed for vehicle production needs to be continually improved to better ensure supply and production volumes and to more accurately predict delivery cycles.

Xpeng said that the normal average delivery time is about 15-17 weeks. 

Xpeng’s related person in charge responded to the news of Xpeng induced CALB:the supply chain for parts of car productions needs to be continuously finished to better assure the production and predict the amount of time needed for delivery.

Data showed that XPeng P7 is the car type that has the most single delivery amount. In 2021 Nov., Xpeng delivered 7839 P7. 

Now, its factory in Zhaoqing has achieved double shifting production, which increased the production rate. This creates the 15613 delivered sales in 2021 Nov., increasing 270% from a month earlier. 

The shortage in battery supply will influence the future deliveries of Xpeng. It is urgent for them to find a new supplier. 

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