CATL’s Investment Trends and Business Strategy

CATL is actively pursuing capital investment and strategic expansion to solidify its position as a global market leader. As of the end of 2023, the company’s total production capacity reached 552 GWh, with an additional 100 GWh under development through new plant construction.

The company has accelerated investment in new facilities both domestically and internationally. For example, in Europe, CATL is building a large-scale 100 GWh battery plant in Hungary to supply automakers such as Mercedes-Benz. In Spain, a joint venture factory with Stellantis is also underway. Additionally, CATL has established a facility near Erfurt, Germany, to strengthen its supply base for European car manufacturers.

In the U.S. market, CATL is carefully evaluating entry strategies while considering geopolitical risks. It is reportedly exploring localized production through a potential partnership with Ford. On the resource procurement front, CATL has invested in critical raw materials such as lithium to ensure stable supply during periods of price volatility—evidenced by the establishment of a large lithium carbonate hub in Jiangxi, China, in 2022 . More recently, with raw material prices stabilizing, CATL has temporarily suspended some of its in-house mining operations, demonstrating a flexible approach.

CATL also continues to invest heavily in research and development, aiming to stay ahead in next-generation technologies such as solid-state and sodium-ion batteries. In 2023, R&D spending reached approximately RMB 18.4 billion, a 19% increase from the previous year.

One notable strategic move is CATL’s diversification of its business portfolio. Beyond supplying battery cells, the company announced in 2024 a new “skateboard” EV chassis—a battery-integrated platform system designed for electric vehicles [REUTERS.COM]. This marks a shift toward deeper collaboration with automakers, positioning CATL as a comprehensive systems provider rather than merely a battery supplier.

CATL is also expanding into the large-scale stationary energy storage sector, aiming to capture demand in power grid applications [REUTERS.COM]. These new business initiatives serve as a long-term hedge against potential EV market slowdowns, allowing CATL to build multiple growth engines and enhance overall corporate stability.

Additionally, reports suggest CATL is planning an initial public offering (IPO) on the Hong Kong Stock Exchange by 2025 [REUTERS.COM], with the goal of raising funds to further strengthen its global expansion and R&D capabilities.