CATL Posts 34% Profit Growth Amid Falling Battery Prices, Global Demand

Chinese electric vehicle battery maker Contemporary Amperex Technology Co. Ltd. (CATL) reported a 33-34% rise in net profit for the first half and second quarter of 2025, reaching approximately 30.5 billion yuan ($4.24 billion) in the first half and 16.5-16.6 billion yuan ($2.3 billion) in Q2, surpassing analyst expectations despite challenges such as falling battery prices and a competitive EV price war in China. Revenue grew modestly by about 7-8% in the first half and second quarter, totaling around 178.9 billion yuan for six months and 94.2 billion yuan in Q2. The company benefited from strong demand in China and Europe, maintaining a leading 50% share in the Chinese EV battery market and supplying major automakers including Tesla, Volkswagen, and BMW. CATL also enhanced its profitability through improvements in its battery materials and recycling business, which significantly boosted gross margins. The firm raised nearly $4.6 billion through a major secondary listing in Hong Kong, funding a $7.6 billion expansion into Europe with new factories in Germany and Hungary to mitigate tariffs and access more profitable markets. Despite geopolitical and economic uncertainties, including a U.S. Department of Defense blacklist designation, CATL's technological advancements, including commercialization of sodium-ion batteries, continue to strengthen its competitive position globally.