Should investors think of CATL as the “Huawei of EV batteries”?
Source: Week in China
Contemporary Amperex Technology Ltd. (“CATL”) is the world’s biggest EV battery maker with a 35% market share. The combination of CATL’s rapid growth, global reach and strategic importance has seen it compared with Huawei, a Chinese telecoms and tech giant.
CATL, which listed in Shenzhen in June 2018, stands out among the largest A-shares in at least one significant respect: it’s the only private-sector firm in the top 10. It is also the only industrial manufacturing play to be considered a ‘high tech’ stock and one that reflects positively on the Chinese government’s strategic push for advances in technology.
As of this week, the battery firm was worth about Rmb880 billion ($130 billion), almost on par with PetroChina, China’s biggest oil producer.
The company has existing and planned capacity of 310 gigawatt hours (GWh) as of the end of 2021.