Lithium-ion Battery Manufacturers in China CATL (Contemporary Amperex Technology Co., Ltd.)

Market position and overview: CATL is a company based in Fujian Province, China, founded in 2011, and is the world’s largest lithium-ion battery manufacturer. In 2023, it will account for approximately 37% of the global market share of EV batteries, far ahead of the second-place company. In China, its share of EV batteries will reach 45.1% in 2024, making it the clear leader. Originally established as an independent automotive battery division of ATL (a consumer battery manufacturer) under the umbrella of Japan’s TDK, the company has grown rapidly with its technological capabilities and large-scale investments, and in 2017 it surpassed Panasonic to become the world’s top manufacturer. Main products and applications: CATL specializes in high-performance batteries for passenger EVs, and mass-produces both lithium iron phosphate (LFP) batteries and nickel-cobalt-manganese (ternary/NCM) batteries. In particular, in recent years, CATL has led the way in low-cost, safe LFP battery technology, with the “cell-to-pack” technology that directly incorporates cells into the pack, and the third-generation “Qilin Battery” announced in 2022, which has improved energy density and cooling performance. In August 2023, CATL also announced a new LFP battery “Shenxing” that supports 4C ultra-fast charging, which is said to be able to charge to 80% in about 10 minutes.

In addition to EVs, CATL is also the world’s leader in the battery market for large-capacity stationary energy storage systems (ESS), and it is reported that annual shipments of energy storage batteries will reach approximately 110GWh in 2024.

On the other hand, CATL itself does not have a battery business for small devices such as smartphones, but the company’s predecessor, ATL, is a world leader in that field. Main customers and partners: CATL’s batteries are used by a wide range of automakers in China and around the world. In China, CATL has business with emerging EV manufacturers such as Tesla (Model 3/Y standard range vehicles manufactured at the Shanghai factory are equipped with CATL LFP batteries), NIO, Li Auto, and XPeng, as well as major domestic manufacturers such as GAC and FAW Hongqi. CATL has also partnered with overseas manufacturers one after another, supplying and collaborating with BMW, Volkswagen, Mercedes-Benz, Honda, and Ford with EV batteries.

For example, CATL formed a strategic partnership with BMW in 2012, the year after the company was founded, and is currently working on a joint venture factory plan with VW for the Chinese market. CATL also signed a large supply contract with Tesla for the Shanghai factory, and has also explored a partnership in the United States (a joint venture plan with Ford). Recent developments: CATL continues to actively invest in equipment and conduct research and development both at home and abroad. It is expanding its production bases to Europe (Erfurt factory in Germany) and North America, and is promoting the localization of its supply chain.

In terms of technology, CATL has also announced the development of the aforementioned ultra-fast charging compatible battery and sodium-ion battery. The company is also focusing on the battery recycling business, and is leading the way in collecting and reusing used batteries.

Thanks to these bold business strategies and technological innovations, CATL has achieved the number one position in the global EV battery market share for six consecutive years as of 2022.

It is expected that the trend of “the strong will be strong” will continue in the future.