Chinese battery giant CATL expands globally: That’s why it matters

The world’s largest electric vehicle (EV) is expanding in full swing and is shaking in the process as technology launches battery sales.

China’s Contemporary Ampe Technology Co., Ltd. (CATL) is a key player in the global transition to more sustainable transportation, with market share in the EV sector About 38%. CATL’s customers include global players Tesla,,,,, public and BMWwith the company Have technology It is much better than its Western competitors.

Despite its huge impact on the electric vehicle industry, the company still flies under radar until May this year, and so far it launched the world’s largest 2025 global initial public offering (IPO).

The IPO raised 41 billion Hong Kong dollars ($5.2 billion) after CATL stock soared and over-allocated options.

This is what CATL has in its work after its IPO.

The company’s 7.6 billion euro (US$8.2 billion) investment was first announced in August 2022 Production is expected to begin This year.

Battery manufacturers have already established a full-asset manufacturing base in Germany that first opened in 2023. joint venture and Stellantis.

CATL’s global investment follows the trend of more Chinese electric vehicle companies, including auto giant Auto Giant Byd, which moved to Europe amid active competition and price wars in the domestic market.

CATL Chief Manufacturing Officer Ni Jun spoke at the World Economic Forum in Tianjin, China on Thursday, saying the cruel discount war would not end without Beijing’s intervention.

He added that if a big player continues to lower prices, it could lead to other competitors being kicked out of the market and creating monopoly. While Catl’s Jun did not name any company, CATL’s main competitor Byd Announce price cut Late May.

Tu Le, founder and managing director of China Auto Insights, said China’s European push has been the driving force behind CATL’s European push, adding that the company has already provided “almost all” of EV machines in China, which limits domestic growth opportunities.

But Europe is not an easy task. Collective placement Punitive tariffs on electric vehicles in China Last year, more Severe suppression In the United States

Le said the Hungarian facility is another important step towards the company’s localization program, which will lead to lower labor costs and a geopolitical more friendly environment than Germany.

CATL also participated Integrated electric vehicle battery project In Indonesia. According to reports from local media, government officials expect production to begin in March 2026, which may make CATL’s Growing electric vehicle market Southeast Asia.

Catl said in a recent interview Financial Times It also plans to introduce battery sales and recycling technologies to Europe to have a significant impact on the regional market. CNBC has contacted CATL for more details.

Although modern battery swap technology is very popular in China, it has not yet taken off in Europe. Nio, a Chinese electric car manufacturer and battery swap pioneer, is an exception. The company has launched 60 battery swap stations in Germany, the Netherlands, Norway, Sweden and Denmark.

Meanwhile, Jeep and Dodge maker Stellantis recently worked with a full US-based company to integrate battery swap technology into a fleet of 100 Fiat 500 EVS in Madrid, Spain.

Experience with using a battery swap station is considered very similar to using an automatic car wash. The electric vehicle driver parked the car on a platform with an integrated system that removed the depleted battery from under the vehicle and replaced it with fresh, fully charged batteries. The whole process takes about five minutes.

Advocates of battery charging through switching stations say the technology solves many problems, especially those related to fast charging and long-term performance, two main points of widespread adoption of electric vehicles.

Another key benefit of the exchange is that it allows automakers to maintain ownership of the battery, which reduces the initial price of the vehicle and creates a regular revenue stream for OEMs, analysts say.

However, some disadvantages include high initial infrastructure costs and a lack of standardization across the automaker.

Connor Watts, a battery raw materials analyst at Consultancy Fastmarkets, said Catl has many partnerships with Chinese OEMs to implement the necessary level of product standardization in its customer base.

“Especially after its recent influx of cash from Hong Kong listing, it has the necessary capital to develop infrastructure within the European market,” Watts told CNBC via email.

He added: “No one has better thought about its market position than CATL that can successfully develop the European battery exchange industry.”

Julia Poliscanova, senior director of the vehicle and electronic mobility supply chain for the campaign group’s transportation and environment, said major automakers must agree to the use of standardized battery designs for battery swap technology to operate at a large scale in Europe.

“Battery swap is a great addition to the charging space, and in some parts of the market, it makes sense … but the solution to our problem is not a silver bullet.”

“We still need batteries, whether it’s a replacement or a permanent car in the car, we still need materials,” she added.