Chinese EV battery giant CATL is posting earnings gains
The world’s largest maker of electric vehicle batteries, China’s CATL, reported a 13.4 percent rise in second-quarter profit on Friday, despite a battery price war weighing on sales.
Founded in 2011 in the Chinese east coast 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 published on the Shenzhen Stock Exchange.
A drop in the cost of raw materials used to make batteries has led to a price war among industry players.
During the same period, CATL’s revenue fell 13.2 percent year-on-year to 87 billion yuan.
CATL is building its second European factory in Hungary, following the launch of the first in Germany in January 2023.
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