EV battery maker CATL sees third-quarter profit surge nearly 200% - PingWest

EV battery maker CATL sees third-quarter profit surge nearly 200%

EV battery maker CATL sees third-quarter profit surge nearly 200%

21 hours ago

CATL, the world's largest electric vehicle battery maker, expects its third-quarter net income to surge to 9.8 billion yuan ($1.37 billion).

In a stock filing on Monday, the Chinese company expected its third-quarter profit to rise nearly 200%, with net income likely to exceed 18 billion yuan in the nine months through September, up 132% from a year earlier.

The Ningde-based company has been investing heavily in expanding production capacity, driven by strong sales in the electric vehicle industry.

To meet growing demand from global automakers, CATL announced in August that it would build a 7.3 billion euro ($7.09 billion) battery plant in Hungary. Once built, it is set to be Europe's largest battery cell plant and CATL's second in the region, making battery cells and modules for carmakers including Mercedes-Benz, BMW, Stellantis and Volkswagen.

As of end of 2021, CATL had an annual battery production capacity of 170.39 GWh, with 140 GWh capacity under construction. The company said previously it aims to install a total of 670 GWh annual capacity by 2025.

In the first quarter of this year, affected by the skyrocketing price of raw materials, the net profit of CATL dropped by 23.62% year-on-year to 1.493 billion yuan, and the gross profit margin plummeted to 14.48%. In order to alleviate the pressure of rising costs, CATL started to raise prices in the second quarter, bringing its profitability back on track.

CATL is expected to release its third-quarter results on October 21.

According to an analysis by the market research company SNE Research, electric vehicle batteries with a total capacity of 203.4 GWh were installed worldwide in the first half of 2022. The leading supplier was CATL with 70.9 GWh or a market share of 34.8%.

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