CATL, the world’s leading battery manufacturer for electric vehicles (EVs), announced a 13.4% increase in net profit for the second quarter on Friday, despite a price war that impacted revenue.
Established in 2011 and headquartered in Ningde, eastern China, CATL produces over a third of the world’s batteries, supplying a vast array of automakers including Mercedes-Benz, BMW, Volkswagen, Tesla, Toyota, Honda, and Hyundai.
Second Quarter Profit Increase
In the second quarter of 2024, CATL’s net profit rose by 13.4% year-on-year, reaching 12.35 billion yuan (1.57 billion euros), according to a calculation based on the company’s statement released on the Shenzhen Stock Exchange, where the group is listed.
Price War Impacts Revenue
The decline in raw material costs for battery production has triggered a price war among industry players. As a result, CATL’s revenue in the second quarter fell by 13.2% year-on-year, totaling 87 billion yuan (11 billion euros).
International Expansion
CATL has a global presence, having inaugurated its first European factory in Germany in January 2023. The company is also constructing Europe’s largest battery production site in Hungary.
Geopolitical Concerns
Last year, Chinese President Xi Jinping expressed both “happiness and concern” about CATL’s global significance, amid the rivalry between Beijing and Washington, which exposes Chinese firms to potential sanctions.