Chinese electric vehicle battery giant CATL’s profit climbed to 13.14 billion yuan ($1.85 billion) in the July-September quarter, as per a statement on the Shenzhen Stock Exchange.
Chinese electric vehicle battery giant CATL reported a 26.0% increase in its third-quarter profits on Friday, yet the figures did not meet the expectations of analysts. Founded in 2011 and based in Ningde, a coastal city in eastern China, CATL manufactures over a third of the global supply of EV batteries. These batteries are integrated into vehicles produced by a wide array of international automakers, including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda, and Hyundai.
The industry has recently seen a decline in the cost of raw materials necessary for battery production, which has ignited price competition among market participants, adversely affecting sales figures. In the third quarter, spanning from July to September, CATL’s net profits climbed to 13.14 billion yuan ($1.85 billion), as disclosed in a statement on the Shenzhen Stock Exchange. However, this profit was below the 14.7 billion yuan anticipated by Bloomberg analysts.
During this period, CATL also saw a 12.5% decrease in sales year-over-year, totalling 92.28 billion yuan. On the international front, CATL is expanding its presence in Europe with the construction of its second factory in Hungary, following the inauguration of its first European facility in Germany in January 2023.
Domestically, CATL has benefited significantly from strong governmental support, with Beijing prioritizing the growth of homegrown high-tech industries deemed strategically important. This backing has played a critical role in the company’s recent success, driven by rapid expansion in the domestic market.
