CATL Profit Growth Slows as EV Market Cools
The earnings growth of China’s CATL, the world’s number one electric vehicle battery maker, has faltered. The net profit growth rate for the third quarter of this year recorded the lowest in 7 quarters.The slump in the Chinese electric vehicle market and the moves by countries around the world, incl
China's CATL, the world's leading electric vehicle battery manufacturer, has experienced a slowdown in profit growth as the EV market cools. The net profit growth rate for the third quarter of 2023 was the lowest in seven quarters, trailing the market forecast. This decline is attributed to the weakening Chinese electric vehicle market and the efforts of various countries to regulate Chinese EVs.
Domestic battery makers, including LG Energy Solution, are seizing the opportunity by securing orders for energy storage systems (ESS) for artificial intelligence (AI) data centers. CATL's stock price has also faced downward pressure due to concerns over Chinese EV manufacturers collaborating with competitors. Despite CATL's global market share increasing to 39.4% from January to August 2023, the second-place BYD saw a decrease to 15.1%.
Major automakers are diversifying their supply chains to reduce dependence on CATL, further impacting the battery industry. Meanwhile, domestic battery companies are pivoting towards energy storage systems (ESS) and targeting the North American market for AI data centers. CATL aims to double its ESS business by 2030 and is developing next-generation batteries for heavy-duty trucks and expanding its battery swap network.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
