Explosive Growth
CATL, China's largest battery manufacturer, is witnessing explosive growth, with its revenue for the first half of the year nearing that of the entire South Korean battery industry.
According to industry sources on July 30, CATL reported sales of 189.246 billion yuan (US$26.6068 billion) and an operating profit of 25.357 billion yuan in the first half of this year. Compared to the same period last year, sales increased by 67.5% and operating profit surged by 117.0%. Net income increased by 122.1% to 21.473 billion yuan compared to the same period last year.
In terms of sales in the first half of this year, CATL nearly equaled the combined revenues of LG Energy Solution, Samsung SDI, and SK innovation, South Korea’s three leading battery companies, which amounted to 35.7174 trillion won (US$28.0445 billion). CATL’s operating profit was three times greater than the combined profits of the Korean companies, indicating that CATL not only dominates in terms of scale but also profitability.
In the first half of the year, CATL’s electric vehicle battery business sales increased by 76.2% compared to the same period last year, reaching 139.442 billion yuan. Sales in the energy storage device (ESS) sector also doubled compared to the same period last year, amounting to 27.985 billion yuan.
According to market research firm SNE Research, as of the end of May, CATL’s global electric vehicle battery market share was 36.3%, significantly ahead of BYD (16.1%) and LG Energy Solution (13.9%). In addition, CATL’s overseas sales in the first half of the year amounted to 67.169 billion yuan, accounting for 35.5% of total sales, indicating its strong presence not only in the domestic market but also on a global scale.
Industry insiders state that “As competition intensifies in the domestic market, CATL is increasingly focusing on the global market,” adding that “CATL aims to become the Apple of the battery industry, going beyond being a simple battery manufacturer and leading the direction of the industry, as demonstrated by its establishment of a subsidiary for electric boats.”