The Beijing Economic-Technological Development Area, or Beijing E-town, welcomed Contemporary Amperex Technology Co Ltd, China's largest automotive lithium-ion battery maker, into its fold on Tuesday.

The company began construction of its first battery plant in North China, adding another link to its automobile industry chain.

The plant is scheduled to begin production in 2026 after two construction phases. Once complete, it will cover an area of about 260,000 square meters.

"The Beijing Economic-Technological Development Area has gathered a group of leading new energy vehicle manufacturers, holding enormous market potential," said Wu Yingming, chairman of the supervisory board of CATL.

"Beijing is a key region for innovation and development in China's automotive industry and an important automotive production base," he said. "Along with rich talent resources in the city, it has provided us a great foundation for cooperation."

Wu said the company's technology advantages and Beijing's resources will benefit both sides. Meanwhile, the plant will also raise the competence of the supply chain in Beijing, Tianjin and Hebei regions, boosting regional economic growth.

CATL is the plant's controlling shareholder. Other partners include Xiaomi and Beijing Automotive Group Co Ltd.

The company plans to continue utilizing advanced technology, products and solutions to collaborate with Beijing to promote electric transportation and charging station infrastructure.

Li Ting, deputy head of the automobile and intelligent manufacturing industry unit at Beijing E-Town, said the partnership aims to create a model of green, low-carbon, high-quality development in Beijing and contribute to establishing a globally competitive new energy industry cluster.

The high-end and new energy automobile industry in Beijing E-town has an annual output value exceeding 200 billion yuan ($27.6 billion), accounting for nearly 60 percent of the city's total.

"Currently, we have been driving the transformation and upgrading of the traditional automobile industry toward intelligence and electrification, aiming to enhance the localization of core components supply," Li said. "The area has also made an effort to reinforce and supplement key links in fields such as sensors, intelligent cabins, electric drive systems and new-mode batteries."

The area is home to leading vehicle manufacturers such as Beijing Benz, BAIC New Energy, Xiaomi Auto and nearly 40 domestic and international component enterprises like Hella.

As a global leader in new energy innovative technologies, CATL has led in energy storage battery shipments worldwide for three straight years, with a global share of 40 percent in 2023.

According to SNE Research, CATL's EV battery consumption volume has ranked first worldwide for seven consecutive years, holding 36.8 percent of the global EV battery market share in 2023.