Leading Chinese Battery Firm CATL Denies “Malicious” Rumors
A series of rumors regarding Chinese battery firm Contemporary Amperex Technology, Co., Ltd. (CATL) have recently surfaced on digital media platforms, causing a 17% drop in the firm’s stock price last week. The reports – all of which have been denied by CATL – allege that the firm is facing new sanctions from the United States, will be removed from the ChiNext weighted stock index, and has failed in talks regarding potential cooperation with Tesla.
“To protect the company’s legitimate rights and interests, on February 12, 2022, we have officially reported the case to the public security authorities and will pursue legal responsibility against the rumor-mongers in accordance with the law,” CATL said in a statement, which labelled the allegations as “malicious.” Tesla also denied the rumor that its talks with CATL have failed.
At present, CATL still appears to be the absolute leader of the global battery market. According to the latest statistics released on last Monday by SNE, a Korean market research institution, CATL remains the single largest supplier of automotive batteries with a global market share of 32.6% as of 2021, ranking first once again. CATL has now been the largest power battery enterprise in the world for five consecutive years.
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On January 27, the company predicted that it net profit in 2021 would be 14 billion yuan to 16.5 billion yuan ($2.2 billion – $2.59 billion), up 150.75% to 195.52% year-on-year, exceeding analysts’ previous expectations.
However, CATL’s rivals are developing rapidly. Shenzhen-based EV maker BYD has set up a series of battery subsidiaries, some of which have plans for public listings. BYD is also promoting the supply of self-developed blade batteries for foreign EV makers. Market insiders expect BYD to become Tesla’s supplier in the future.
China Lithium Battery Technology, which is not listed yet, has put forward a production capacity target of 500GWh by 2025, and has grabbed some orders of GAC Aion from CATL. In addition, second-line battery factories such as Gotion Hi-Tech and Svolt are struggling to catch up.