CATL's Revenue Soars by 41% Amidst Electric Vehicle Boom

China's electric vehicle expansion is unstoppable, evident in brands like BYD and the Chery Group, as well as in companies producing less visible yet critical components. This is the case with CATL, the battery giant that recently made one of the most successful debuts on the Hong Kong Stock Exchange.

In the last quarter, its revenue surged by 41% to 18.5 billion yuan (approximately 2.5 billion euros), aligning with analysts' forecasts.

The company is one of the world's leading suppliers of batteries for electric vehicles, holding a market share of 36.8% in original equipment for the year to date, according to SNE Research.

Its main competitor is BYD, which also saw its share increase, primarily due to the higher demand for its range of electric cars. CATL, however, offers its solutions to the Chinese manufacturer's competitors.

Looking ahead, international expansion is on CATL's agenda, particularly in Europe. Its Hungarian factory is expected to be operational by the end of this year or early 2026.

Originally designed to produce lithium-ion cells, Chinese engineers have adapted the assembly lines to work with other chemical compositions, such as the more affordable lithium iron phosphate. According to Bloomberg, its expansion in Europe "remains susceptible to geopolitical tensions, such as a potential restriction on Chinese technology in the West."

Last August, CATL suspended operations at a lithium mine in Jiangxi province due to an expired permit. This caused mineral prices, as well as the shares of its main rivals, to soar.

The company is expected to renew its exploitation permits, which will allow it to reduce its exposure risk to lithium. Since then, metal futures prices have stabilized.