Advertisement
China energy security
EconomyPolicy

CATL bets on hydropower amid China’s drive to expand private stakes in state projects

Battery giant’s stake in Sichuan plant reflects Beijing’s push to diversify funding and inject market discipline into public infrastructure

2-MIN READ2-MIN
Listen
The deal marks CATL’s latest involvement in hydropower projects, following Beijing’s pledge last year to open commercially viable public infrastructure to the private sector. Photo: Shutterstock
Alice Li
China’s private sector is increasingly taking part in public infrastructure, with battery giant Contemporary Amperex Technology Ltd (CATL) joining a newly announced hydropower project as Beijing encourages private investors to enter fields once dominated by state funding.
CATL will partner with a subsidiary of the state-owned SDIC Power Holdings to build a 33.4 billion yuan (US$4.9 billion) hydropower plant in southwestern Sichuan province. The battery maker will hold a 10 per cent stake in the joint venture.

The project would have an installed capacity of 2.4 gigawatts (GW) and an estimated annual output of 8.65 billion kilowatt-hours, with the first unit expected to begin operations in 2035, according to an announcement by SDIC Power on Monday.

The deal marks CATL’s latest involvement in hydropower projects, following Beijing’s pledge last year to further open commercially viable public infrastructure to the private sector – an important engine for boosting economic growth and jobs.

“Channelling private capital into infrastructure not only diversifies funding sources, but also injects commercial discipline into traditionally state-dominated projects,” said Peng Peng, executive chairman of the Guangdong Society of Reform, a government-affiliated think tank.

He added that market-driven discipline would help state-owned enterprises lower operational costs and improve profitability.

Beyond policy alignment, CATL’s move carried commercial logic tied to surging demand for artificial intelligence computing power and its vast energy needs, according to Peng.

Advertisement
Select Voice
Select Speed
1.00x