Aerial view of the headquarters of the Contemporary Amperex Technology Co., Limited (CATL) on February 6, 2025 in Ningde, Fujian province in China.
VCG | Visual China Group | Getty images
The largest manufacturer of electric vehicle batteries (EV) in the world is going to all on international expansion and could shake the electric vehicle market in the process with its deployment of changing battery technology.
China Contemporary Amperex Technology Co. Ltd. (CATL) is a key player in global transition to more sustainable transport, with a market share in the VE sector Approximately 38%. CATL customers include global players such as Tesla,, Volkswagen And BmwThe company benefiting from technology much higher than that of Western competitors.
Despite its oversized impact on the electric vehicle industry, the company had mainly stolen under the radar until May this year, when it has launched the largest public offer (IPO) to the world to date in Hong Kong.
The IPO collected $ 41 billion in Hong Kong ($ 5.2 billion), after Catl shares jumped and an over-allocation option was fully exercised.
Here is what Catl has in progress after its IPO.
Global extension
Before its public offer, CATL said that 90% of the funds collected by making the public would be devoted to its expansion in Europe, in particular its construction plant in Hungary.
The investment of 7.6 billion euros ($ 8.2 billion) of the company in the Debrecen battery factory was announced for the first time in August 2022 and is should start production This year.
The battery manufacturer has already established an exclusive property manufacturing base in Germany, which opened in 2023. It also announced its intention to build a battery plant in Spain through a joint venture with Stelllantis.
Bill Russo, founder and CEO of the Automobility Investment Consulting Consulting Society, said that CATL expansion plans seemed designed to maintain its global leadership and scale, citing limited growth dynamics on its domestic market and growing competition.
“CATL’s early advantage helps lock long-term contracts, and pricing power is stronger in Europe, supporting higher margins compared to China,” Russo told CNBC by e-mail.
“Hungary is a strategic bridge on the EU market,” he added. “Hungary offers the proximity of the main OEMs, government incentives and lower labor costs-making it an attractive hub for Chinese EVs and battery players looking for foot in Europe,” he added.
Visitors visit the stand Catl at the 21st Changchun International Automobile Expo in Changchun, Jilin province, China, July 17, 2024.
CFOTO | Future publishing | Getty images
CATL global investments follow a trend of more Chinese electric vehicle companies, including the Géant de l’Auto Byd, moving to Europe in the midst of aggressive competition and price wars on the domestic market.
Speaking at the World Economic Forum in Tianjin, China on Thursday, or Jun, manufacturing director of Catl, said that the brutal reduction war would not end without intervention by Beijing.
He added that, if a large actor continues to reduce prices, this could lead to the bin of other competitors on the market and create a monopoly. Although Jun de Catl does not appoint any business, the main competitor of Catl byd announced price reductions at the end of May.
Tightened margins and overcapacity in China were a driving force in the push of Catl in Europe, said you the, founder and managing director of Sino Auto Insights, adding that the company already offers “almost all” manufacturers of electric vehicles in China, limiting opportunities for interior growth.
But everything in Europe was not easy. The block placed punitive prices on electric vehicles made in Chinese last year, after even more serious repression in the United States
Among the companies that could succeed in developing European battery exchange industry, none is better placed than Catl given its position on the market.
Connor Watts
Battery raw material analyst at Fastmarkets
The Hungarian installation said it is another major step towards the location plans of the company and that it will result in a drop in labor costs and a more user-friendly geopolitical environment compared to Germany.
Catl is also involved in a Integrated electric vehicle battery project In Indonesia. According to local media, government officials expect production to start in March 2026, which could give Catl a presence on the growing electric vehicle market in Southeast Asia.
Battery exchange technology
Catl said in a recent interview with Financial time That it also plans to deploy its battery exchange and recycling technology in Europe, in a decision that could have significant ramifications for the regional market. CNBC contacted CATL for more details.
Modern battery exchange technology, although popular in China, has not yet taken off in Europe. The manufacturer of Chinese electric vehicles and the pioneer of the Nio battery exchange is an exception. The company has introduced 60 battery exchange stations across Germany, the Netherlands, Norway, Sweden and Denmark.
Jeep and Dodge Maker Stellantis, meanwhile, recently established a partnership with Ampe based in the United States to integrate battery exchange technology on a fleet of 100 EV Fiat 500 in Madrid, Spain.
It is believed that the experience of using a battery exchange station is very similar to the use of automated car washing. The Driver EV travels the car on a platform with an integrated system, which eliminates the exhausted battery under the vehicle and replaces it with a fresh and fully loaded battery. The entire process lasts about five minutes.
A visitor examines an Evogo battery exchange station of the contemporary Chinese battery producer Amperex Technology Co., limited CATL at the 22nd International Fair in China for investment and trade in Xiamen, in the south-east of the province of Fujian in China, September 8, 2022.
Xinhua press agency | Xinhua press agency | Getty images
Defenders of the loading of batteries via an exchange station indicates that technology solves a number of problems, in particular concerning fast load and long -term performance – two major snack points for the generalized adoption of electric vehicles.
Analysts claim that another key exchange advantage is that it allows car manufacturers to maintain the property of the battery, which reduces the initial price of the vehicle and creates a regular income flow for OEMs.
Certain drawbacks, however, include high initial infrastructure costs and a lack of standardization between car manufacturers.
Connor Watts, an analyst of battery raw materials at Consultancy Fastmarkets, said that CATL, which has a certain number of partnerships with Chinese OEMs, is well positioned to implement the necessary level of product normalization in its customers.
“And in particular after his recent influx of money from his Hong Kong list, he has the capital necessary to develop infrastructure on the European market,” Watts at CNBC said by e-mail.
“Companies that could succeed in developing European battery exchange industry, none is better placed than Catl given its position on the market,” he added.
Julia Policcanova, main director of vehicles and e-mail supply chains in the Transport & Environment campaign group, said the main automotive manufacturers should accept a standardized cell design so that battery exchange technology works on Europe.
“The exchange of batteries is a good addition to the load space, and in certain parts of the market, it is logical … But it is not a miracle solution to solve our problems,” Poliscanova told CNBC by phone.
“We will always need batteries and we will always need materials for them, whether they are exchanged or if they are in the car permanently,” she added.
