The revenue of leading Chinese battery firm CATL maintained rapid growth in the first half of the year, despite the high price of upstream raw materials. A 2022 interim report released by the firm on August 23 showed that the net profit attributable to shareholders of listed companies in the first half of 2022 was 8.17 billion yuan ($1.19 billion), a year-on-year increase of 82.17%.
During H1 2022, the company achieved revenue of 112.97 billion yuan, a year-on-year increase of 156.32%. In terms of products, in the first half of the year, its power battery systems achieved an operating income of 79.143 billion yuan, a year-on-year increase of 159.90%; lithium battery materials achieved an operating income of 13.67 billion yuan, a year-on-year increase of 174.15%; and its energy storage system achieved a revenue of 12.736 billion yuan, a year-on-year increase of 171.41%. Affected by upstream raw materials’ rising prices, the corresponding gross profit margins were 15.04%, 20.65% and 6.43%, respectively, all declining year-on-year.
Robin Zeng, the chairman of CATL, previously said that the capital speculation of upstream raw materials had brought short-term troubles to the industrial chain, resulting in soaring prices of lithium carbonate, PVDF, lithium hexafluorophosphate, electrolyte and petroleum glue within a year.
The company also recently accelerated its pace in exploring overseas markets. According to the report, in the first half of 2022, the company’s overseas battery business revenue increased by 123.35% year-on-year. In July, following the steady progress of a power battery factory in Thuringia, Germany, the firm announced its second overseas power battery manufacturing base, which will be settled in Hungary. Once completed, the base’s power battery capacity will achieve 100GWh, while the project will also set a new record for Hungary in attracting foreign investment.
In order to meet the challenges brought about by rising raw material prices, CATL has also continued to carry out technological innovation R&D. In the first half of 2022, the company invested 5.77 billion yuan in the R&D field, a year-on-year increase of 106.5%.
On June 23, the firm officially released the third-generation cell to pack (CTP) technology, and announced that this new product, named the “Kirin Battery,” will be mass-produced next year. The firm said that it would officially announce the battery’s implementation models at the New Energy Vehicle Congress held from August 26 to August 28.