Chinese power battery giant CATL announced on March 10 that the company’s stock price increased by more than 4%, closing at CNY 492.5, with a turnover of over CNY 10 billion.
Founded in 2011, Contemporary Amperex Technology Co., Limited (CATL) (宁德时代) is the biggest global battery manufacturer focusing on lithium-ion battery development and production. The company controls nearly 50% of the market share in this industry.
In 2020, the company was ranked the top among other manufacturers in global electric vehicle battery consumption volume and established two energy storage joints with the State Grid Integrated Energy Service Group.
The company also partnered with leading electric vehicle companies, such as Tesla. Its another competitor, China Aviation Lithium Battery (CALB), is another alternative to source batteries to auto companies. But compared to CATL, their ternary lithium batteries generally last shorter and therefore CATL is still taking a dominant position in this field.
In early March this year, the prices of battery-grade lithium carbonated prices have continued to climb due to the increasing demand in the overseas market. This situation results in the cost pressure for many midstream battery manufacturers. In the short term, battery supply remains as an obscure to balance the price market.
In the tier-2 market, CATL's market shares have fallen simultaneously with a cumulative decline of 14.61% from March 1 to March 8. On March 8, the company’s net selling reached CNY 2.6 billion. However, the company has progressed positively with a goal of building a battery material recycling facility in the central Chinese province of Hubei with an investment reaching up to CNY 32 billion (USD 4.96 billion) following its announcement on October 2021.