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China EV Battery Giant CATL Sees Profits Nearly Triple

CATL reported profits of $1.3 billion in Q3, with revenue also rising by 232.5% to $13.41 billion

Shares plunged by 4.9% in Shenzhen on Tuesday following reports the world's biggest battery maker could spend up to $5 billion on facilities in Mexico and the US.
CATL's new UK partnership with involve up to 7.5 GWh in battery energy storage systems. File photo: Reuters.


China’s CATL saw profits nearly triple in the third quarter from the same time last year, the world’s largest electric vehicle (EV) battery maker said on Friday.

CATL reported profits of $1.3 billion in the three months to end-September, a company filing to the to the Shenzhen stock exchange said. Revenue also rose 232.5% to $13.41 billion.


CATL Overseas Expansion

CATL has accelerated its expansion into overseas markets with contracts to supply batteries to major carmakers including Mercedes Benz Group and BMW in Europe and Ford Motor Co in the United States, where government incentives are driving demand for EVs.

The Chinese firm announced in August that it would build a $7.6 billion battery plant in Hungary, which would be Europe’s largest.

But it’s to halt investment plans in battery plants in North America due to concerns that new US rules on sourcing battery materials will drive costs higher.

To offset rising costs of battery materials, CATL has taken measures including signing long-term contracts with suppliers, recycling materials and negotiating a dynamic battery pricing scheme with automakers.


Bright Future Ahead

CATL, which supplies one of every three EV batteries sold globally to clients is expected to double deliveries this year amounting to 300 gigawatt hours (GWh), according to analysts at Soochow Securities.

Its profitability is also likely to improve thanks to its investments in battery metals and an expected increase in lithium output next year, they added.


  • Reuters, with additional editing from Alfie Habershon


Read more:

China’s CATL Halts US, Mexico Battery Plant Investment

China’s CATL to Build Europe’s Biggest EV Battery Plant

Tesla Slashes China Prices Amid Talk of EV ‘Price War’


Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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