The world-leading EV battery manufacturer's stock surges over 20%, stimulated by a piece of bullish news. It is now approaching a CNY 800 billion market capitalization.
On December 31, 2020, CATL announced that it would invest in the expansion of the Jiangsu Lithium-ion Battery Production Base project, the Yibin Power Battery Manufacturing Base project and the Fuding Lithium-ion Battery Production Base project, with investments of CNY 10 billion yuan, 17 billion and 12 billion respectively. The investment amount is around CNY 39 billion in total.
According to CICC's analysis, in 2020 CATL announced an over CNY 73 billion production capacity construction, hitting a historical high. It is seeking to boost production capacity. It is estimated that global installed power battery demand may reach more than 1300GWh in 2025, with more favorable policies. Under the outbreak situation in demand, a high-quality supply is relatively scarce, which creates opportunities for CATL. It is expected that the company will maintain its leading position of about 30% of global market share in the medium and long term.
Stimulated by the bullish news and the report, the company's stock surged 10.39% in one day and its market capitalization increased to CNY 74.5 billion. Now the EV battery manufacturer has a total value near CNY 800 billion and its performance in 2021 definitely will draw the attention of global investors.