Geely has sold its 18 GWh battery plant in Chongqing to CATL, according to Chinese media outlet Huxiu. The factory, originally planned by Geely in 2021, never started production as scheduled and was only topped out in June 2026. The sale marks a significant shift in Geely's battery strategy: the company now aims to produce only about 30% of its own cells by 2027, down from earlier ambitions of greater self-sufficiency.
The Chongqing plant, operated by Chongqing Yaoning, was part of Geely's broader battery push. Initially owned by a Geely technology investment platform, it was transferred in 2024 to the Yaoning system controlled by Li Xingxing, a Geely affiliate. The plant was planned to have an annual capacity of 18 GWh, with trial production slated for end-2026 and full production in Q1 2027. CATL, which already operates at a utilization rate of about 95%, will likely integrate the facility into its existing network.
Geely's changing battery calculus
Geely's decision to sell reflects a broader reassessment of in-house battery manufacturing. In 2021, when the Chongqing project was signed, automakers feared being held hostage by battery suppliers and rushed to build their own plants. But by 2025, Geely consolidated its battery operations under Zhejiang Jiyao Tongxing, unifying brands like "Golden Brick" and "Shield Short Blade" into a single "Shield Golden Brick" line. The goal was set at about 30% self-supply by 2027, with the rest coming from joint ventures and external purchases.
Geely still retains two main battery joint ventures: one with CATL (called Times Geely, 51% CATL and 49% Geely via Zeekr) and another with Sunwoda (70% Geely, 30% Sunwoda). A previous JV with Farasis was dissolved in 2024. This "self-build, joint-build, buy" model is now Geely's preferred approach, according to Huxiu.
Geely's need for batteries has not diminished. In 2025, Geely Holding sold 4.116 million vehicles, including 2.293 million new-energy vehicles (BEVs and PHEVs). Even at a conservative 45 kWh per vehicle, that translates to a demand of around 100 GWh annually. Jiyao Tongxing's 11 manufacturing bases across eight cities are targeting a total capacity of 70 GWh by 2027, so the additional 18 GWh from Chongqing would have been digestible—but Geely chose to divest.
CATL's gain, Geely's strategic exit
For CATL, the acquisition is straightforward: the Chongqing plant is close to Geely's vehicle production bases and likely comes with order commitments. CATL's effective capacity in the first half of 2026 was 525 GWh, with output of 498 GWh, so absorbing 18 GWh is not a stretch. The deal also aligns with CATL's expansion, as it has 764 GWh under construction.
The sale underscores a broader industry trend: automakers are increasingly outsourcing battery production to specialists, focusing on vehicle development and software instead. According to Huxiu, Geely's sale of the Chongqing plant is a "re-choice" in the division of labor across the EV supply chain, marking the end of the era when Geely tried to do everything itself.
