Chinese Battery Giant CATL Announces 2022 Results, Almost Doubles Profit

Chinese battery giant Contemporary Amperex Technology Limited (CATL) has announced its financial results and said that it almost doubled its net profit in 2022 due to the booming electric vehicle market at home.

CATL said that its net profit increased by 93 per cent to $4.4 billion in 2022 year on year. The company disclosure shows that its revenue increased by 152 percent to $47.2 billion.

As per the announcement, revenue from the power battery business increased by 159 per cent. The net sale in this segment more than doubled to 242 GWh last year.

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It enjoys a massive 37 per cent share in the world power battery market in 2022. This is again an increase of 4 percentage points from the previous year. CATL has been ranked number one player in this segment for the sixth consecutive year.

As far as the energy storage business is concerned, the annual revenue also saw an increase of 230 per cent.

In the fourth quarter, the net profit climbed up by 61 per cent as compared to 131 per cent in the third quarter.

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The electric vehicle segment is expected to expand more than ever due to recovery in the supply chains and this is expected to benefit CATL. The firm has strong cost controls and technological advantages over other players in the sector. The battery maker may have the highest sales growth rate in the industry this year too, as per market experts.

The Chinese player also has many expansive projects coming up across the world through which the company expects sodium-ion and M3P batteries to go to mass production in 2023.

CATL has its first cell factory outside China in Germany that has already begun deliveries of lithium-ion battery cells. It has recently signed an MoU with applied safety science provider UL Solutions for strategic cooperation to help create safer deployment and use of battery energy storage systems (BESS) and EV batteries.

Results from CATL as well as Jinko Solar in the past week demonstrate just how strong a stranglehold Chinese firms have on the green transition market, with firms in the renewable energy, and EV space dominating global markets. It is a grip that the Chinese government has taken years of investment to develop, and will be very hard to loosen without a high cost in terms of tariffs etc worldwide.