INVESTMENT ADVISORY: Purchase shares in CATL, offload shares in Tesla
Giving the Shovels: An In-Depth Look at Contemporary Amperex Technology Co (CATL)
Jumping onto the electric vehicle (EV) bandwagon recently with its Hong Kong listing, this Chinese battery powerhouse stands as a pivotal player in the industry, providing the essential technology—batteries—to whoever emerges victorious in the cutting-edge EV race.
CATL's core focus is on producing top-notch lithium-ion batteries, making it a preferred supplier for various EV manufacturers, boasting a market share of approximately 35%. Among its revolutionary array of power-packed innovations, the company showcases the new-generation fully nano-crystallised cathode battery, which can snag an 80% charge in just 10 minutes.
The company has strategically honed its supply chain by delving deep into upstream mining and raw materials, enabling it to brace itself against potential price shocks and supply issues.
CATL's portfolio expands beyond automotive applications, embracing larger batteries for energy storage in electrical grids and establishing production facilities throughout Europe. With plans to break into the US market in 2026, the world better watch out for this dynamic player.
Leveraging industry insights, here's a closer look at CATL's current market standing:
Market Position
- Market Dominance: Holding a substantial global market share of 30%, CATL reigns supreme as the world's top EV battery manufacturer, with market estimates fluctuating between 28.8% to 38% worldwide[2][4]. In home turf, the company's supremacy is undeniable, capturing 42.87% of China's market share as of May 2025[1].
Market Growth
- Globally Speaking: The globally surging EV battery demand reached a staggering 750 GWh in 2023 and is projected to surpass 1 TWh in 2025 - a figure the International Energy Agency (IEA) predicts will crack the 2 TWh benchmark by 2030[2].
- China's Booming EV Battery Demand: The findings from May 2025 reveal a 43.1% year-on-year surge in China's power battery installation volume, underscoring the industry's robust growth trajectory[1].
Competition
- Key Rivals: Contending with the likes of BYD and LG Energy Solution is all in a day's work for CATL. BYD, though boasting a solid position in China, has experienced a recent dip in market share[1]. LG Energy Solution may be a significant global player, but it remains in CATL's rearview mirror in terms of market share[2].
- Emerging Technologies: The industry is undergoing a seismic shift, with lithium iron phosphate (LFP) batteries still holding sway. Research into novel technologies, like sodium-ion batteries, is gaining traction, with CATL at the helm of the movement[2].
Recent Developments
- Capital Infusions: CATL's recent secondary listing on the Hong Kong Stock Exchange garnered over $4.5 billion, making it the year's largest IPO. These funds channeled towards expansion include establishing a facility in Hungary[3].
- Innovative Technologies: Pioneering ultra-fast swappable EV batteries has positioned CATL as a frontrunner, with the "Choco-SEB" system allowing for 100-second battery swaps, cementing its status as a pioneering force in the market[4].
In a nutshell, CATL has carved out a strong position in the competitive EV battery market, feasting on game-changing technologies, impressive market share, and substantial fundraising for expansion. However, the industry remains fiercely contested, and emerging technologies and global growth trends present formidable challenges.
- In its quest for dominance, CATL has invested heavily in energy technology, producing advanced lithium-ion batteries that secure a 30% global market share and 42.87% in China, according to recent data.
- Recognizing the growing demand for energy storage solutions, CATL has expanded its operations beyond the automotive industry, venturing into energy finance by establishing production facilities in Europe and planning to enter the US market in 2026.
- To secure a steady supply of raw materials and protect against potential price shocks, CATL has strategically delved into mining and upstream activities, boosting its competitive edge in the industry.
- With the globally surging EV battery demand predicted to surpass 1 TWh in 2025, CATL secured a capital infusion of over $4.5 billion through its Hong Kong IPO in 2021, channeling funds towards research, development, and expansion projects like the construction of a facility in Hungary.
