China’s CATL beats estimates as battery profit growth quickens

Published Mon, Mar 9, 2026 · 10:20 PM

[BEIJING] Chinese electric vehicle battery maker CATL’s net profit rose by a better-than-expected 57.1 per cent in the fourth quarter, in the face of oversupply issues, intensifying competition and US scrutiny of its relationship with Ford.

Fourth-quarter profit rose 57.1 per cent from a year earlier to 23.17 billion yuan (S$4.3 billion), compared with a 41.2 per cent rise in the third quarter, the biggest gain in two-and-a-half years, according to a stock filing on Monday (Mar 9).

The fourth-quarter number was above analysts’ forecast of a 40.9 per cent increase, according to data compiled by LSEG.

Revenue was up 36.6 per cent to 140.6 billion yuan versus a 12.9 per cent increase in the third quarter. Analysts had expected a 23.8 per cent rise.

For the whole of 2025, its profit topped estimates with a 42.3 per cent growth, the fastest in three years.

CATL – which supplies the biggest EV brands including Tesla, Xiaomi and Nio – has dialled up investments in battery swapping stations and mounted advertising campaigns at railway stations and airports.

It has also stepped up expansion into Europe and Asia, consolidating its market leadership.

The EV battery specialist widened its lead last year with a 39.2 per cent share of global EV battery usage from 38 per cent in 2024, followed by BYD whose share slid from 16.9 to 16.4 per cent, according to SNE Research.

There were questions over its partnership with Ford after a US House committee chair queried the licensing terms and technology transfer implications.

CATL also faces intensified competition this year, and China’s auto market – the world’s largest – is on track for the worst year since 2020 when the economy was battered by the pandemic.

Its closest rival BYD on Thursday unveiled its first major battery upgrade in six years, promising rapid charging even in cold weather.

BYD also announced a plan to establish a network of 20,000 fast-charging stations, supported by energy storage systems, by the end of 2026, a move analysts say could drive increased adoption of energy storage batteries.

CATL’s share of the global market for lithium-ion batteries for energy storage systems remained unchanged at 30 per cent last year while its shipments jumped 80 per cent year on year, data from SNE Research showed. Revenue from the energy storage sector accounted for 14.7 per cent of CATL’s overall sales in 2025. REUTERS