Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle battery manufacturer, is intensifying its global expansion efforts to capitalise on the growing overseas markets. As CATL’s growth in China’s booming EV market becomes saturated, the company is making international expansion a top priority, with its Chairman spearheading the initiatives.
In 2023, CATL solidified its leadership position by installing nearly 300 GWh of batteries, a 41 per cent year-over-year increase, capturing a 36.8 per cent market share, the only manufacturer with a share above 30 per cent. Despite mounting competition, CATL’s market share grew from 36.2 percent in 2022.
To fuel growth beyond China, CATL is adding two new overseas plants to its previously announced six facilities planned in Germany, Thailand, Hungary, Indonesia, and two in the United States (with Ford and Tesla). The company’s president, Robin Zeng, is now leading the international offensive, supported by four co-presidents overseeing various aspects of the overseas operations.
One of the new plants will reportedly be a joint venture with Stellantis in Spain, while CATL is also considering establishing a wholly-owned cathode materials facility in Morocco to supply its European battery plants.
CATL is exploring licensing its technology to around 10 original equipment manufacturers (OEMs), including reported discussions with General Motors to license its lithium iron phosphate (LFP) battery technology and potentially establish a joint North American factory.
CATL’s cost-cutting efforts have reduced its battery costs to 400 yuan ($55) per kWh for LFP batteries, compared to 600 yuan ($83) per kWh for nickel-cobalt-manganese (NCM) batteries. With nearly one in three cars expected to be electric by 2030, CATL’s global expansion strategy aims to capitalise on the growing demand for electric vehicles and maintain its leadership position in the rapidly evolving industry.