Chinese EV battery giant CATL posts jump in profits
by AFP Staff Writers
Beijing (AFP) July 26, 2024
The world’s leading maker of electric vehicle batteries, China’s CATL, on Friday reported a 13.4 percent jump in second quarter profits despite a battery price war weighing on sales.
Founded in 2011 in the eastern coastal Chinese city of Ningde, CATL produces more than a third of the electric vehicle batteries sold worldwide.
They are used in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.
In the April-June quarter, CATL’s net profit rose 13.4 percent year-on-year to 12.35 billion yuan ($1.7 billion), according to a calculation based on a statement CATL released on the Shenzhen Stock Exchange.
A drop in the cost of raw materials used to make batteries has triggered a price war among players in the sector.
During the same period, CATL’s sales fell by 13.2 percent year-on-year, to 87 billion yuan.
CATL is building its second European factory in Hungary after launching its first one in Germany in January 2023.
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