CATL is a world-leading company that focuses on the development and production of lithium batteries. The business field of CATL includes:
- New energy vehicles’(NEV) automotive battery system development
- NEV’s energy storage system’s development, production and sales
- Provision of solutions to the world’s new energy applications.
On Jan. 27, CATL announced that it is expecting a net profit of 140-165 billion RMB in 2021, increasing 150.75%-195.52% compared with last year.
This significant growth in profit is mainly due to increased penetration of the NEV and energy storage markets in 2021.
As the head producer of car batteries, CATL has achieved long-term collaboration with Tesla, Xpeng, NIO, and other new energy vehicle companies.
These reasons largely increase battery sales.
CATL began to release its market development progress and new production capacity. CATL suggested that this strategy will allow for higher production and sales.
CATl also suggested in its announcement that it has increased productivity and thus the number of sales. This not only explained the reason for CATL’s greatly increasing net profit but also released a positive signal towards its investors and customers, diminishing their concerns.
In 2021, the problem of the core deficit has troubled many car producers and causes a lot of car products to be lacking a supply, and thus decrease companies’ number of sales.
The new energy market is now thriving, but it has a low market share relative to the whole car market. Meanwhile, many sectors of the government have the incentive to weed out traditional fuel-powered cars. In the long run, NEV’s substitution of fuel-powered cars is only a matter of time.
Being the automotive battery producer with the largest market share, CATL’s battery has significant importance to car companies. Without a doubt, CATL’s profit and revenue can continue to increase.
CATL’s power battery installed base in China for the full year 2021 is 80.51 GWh, capturing 52.1 percent of the market, according to data released earlier this month by the China Automotive Battery Innovation Alliance.
In 2021, China’s cumulative power battery installed base was 154.5 GWh, up 142.8 percent year-on-year, the data showed.
SNE Research published a report, suggesting that CATL occupied a market share of 31.8% in 2021, ranking the first globally.
In comparison, LG which ranked second has only a market share of 20.5%. It remains to be seen whether CATL’s current advantages can be maintained in the future.