CATL's Success Story: A Strategic Journey of Innovation and Expansion.
Every week, the battery landscape shifts in fascinating ways — this one is no different.
Welcome back to another edition of my newsletter! - Week 5 2025
In this week's edition, we are exploring Contemporary Amperex Technology Co. Limited (CATL) story. The Chinese company dominates the global battery market, driven by visionary leadership and strategic innovation.
Summary
Special topic: CATL’s success story
Battery Industry Pulse: Weekly Roundup.
Special topic: CATL’s success story
You may think that CATL's success started in 2011 but it’s more complex.
One key man behind CATL’s success is Robin Zeng.
He was born in March 1968 in Ningde, Fujian province in China. At the time, Ningde was a farming village.
Robin Zeng majored in shipbuilding at Shanghai Jiaotong University. After graduation, he returned to Ningde to work for a state-owned enterprise.
He quit after only three months. He then moved to Dongguang, where he joined SAE Magnetics, a subsidiary of the Japanese conglomerate TDK Corporation.
He quickly became the youngest director of engineering. His superiors appreciated him so much that they sent him abroad to learn about batteries. In the 1990s, Sony revolutionized the battery industry by commercializing the first lithium-ion battery.
Amperex Technology Limited (ATL)
Robin Zeng saw the great potential of lithium-ion batteries and decided to leave TDK. He co-founded Amperex Technology Limited (ATL) in 1999.
He went to the USA to license battery technologies, especially the ones from Bell Labs. But, after several attempts, it didn’t work well. The technology would swell and sometimes even explode after repeated charging.
Through rigorous experimentation with diverse chemical formulations, Zeng ultimately engineered a stable compound that withstands repeated charging cycles without swelling.
In 2003, ATL earned Apple's trust and became its battery supplier for the iPod. Then, ATL won several other customers and became the largest battery supplier in the world.
During his time at ATL, Zeng earned a Master's in Engineering from South China University of Technology in 2001 and a PhD in Physics from the Chinese Academy of Sciences in 2006.
In 2005, Japanese electronics giant TDK acquired ATL, seeking expertise in lithium-ion technology. Robin Zeng remained as CEO. Under TDK, ATL expanded production and R&D, becoming a top supplier for brands like Samsung and Huawei. He stayed there until 2011.
Contemporary Amperex Technology Limited (CATL).
In 2011, seeing China’s push for New Energy Vehicles, Zeng spun off ATL’s electric vehicle battery division into Contemporary Amperex Technology Co. Limited (CATL).
He came back to his hometown Ningde to build the headquarters. CATL leveraged ATL technologies and processes.
Several factors played in favor of CATL in the early years:
Only 1 year after its creation, CATL secured a pivotal partnership with BMW, which validated CATL's technology and credibility.
“We have learned a lot from BMW, and now we have become one of the top battery manufacturers globally,” Zeng said at the 2016 Zinoro plug-in hybrid launch event. “The high standards and demands from BMW have helped us to grow fast.”
The exclusion of foreign companies from Chinese subsidies.
BYD, a strong competitor, decided to keep the batteries for itself to fuel its automotive business. It opened the path for CATL to sell its batteries to other automakers on the market.
The subsidies for commercial vehicles (especially buses) ran out and China started to boost the subsidies for passenger vehicles. CATL was focused on NMC which was the preferred chemistry at the time for passenger vehicles.
CATL invested heavily in R&D and capacity expansion. It’s still the case.
CATL R&D
CATL’s commitment to innovation is guided by its world-class R&D efforts:
20,000 R&D staff worldwide.
US$2.59bn investment in 2023.
Nearly 30,000 issued and pending patents worldwide.
A strong focus on innovation delivers real results. CATL’s position as the world’s battery leader is no coincidence.
CATL is shaping the future with solutions like:
CATL Bedrock Chassis, the world's first ultra-safe skateboard chassis.
CATL's third-generation cell-to-pack (CTP) technology Qilin.
Shenxing, known as Superfast Charging LFP Battery.
Freevoy, the world's first hybrid (SIB/LIB) battery.
TENER, an energy storage system boasts a 6.25 MWh capacity in a 20-foot container.
Sodium-ion 2.0, will be launched in 2025 in China, with mass production to begin in 2027.
Condensed battery, CATL's condensed battery leverages highly conductive biomimetic condensed state electrolytes.
M3P battery, olivine structure of LFP as the base lattice structure, replacing iron at some points by doping two of the metallic elements, including magnesium, zinc, and aluminum.
LMFP….and more
It’s difficult to find similar battery makers to develop innovative products at this rate.
I made a quick summary of the CATL main products that could be helpful for you:
CATL global expansion
With more than 10 battery cell plants in China and 1 battery cell plant in Germany, CATL is leading the way with large capacities to meet the demand.
The Chinese company is planning its global expansion with:
A new battery cell plant in Hungary.
A new battery cell plant in Spain with Stellantis.
A new battery cell plant in Indonesia.
A potential new battery cell plant in Europe with another automaker.
In addition, CATL is investing in the battery value chain from mine to recycling.
CATL results
For years, CATL is the world battery leader for the EV market and ESS markets. They are the two largest markets for battery demand.
CATL has the most extensive customer portfolio on the market, surpassing LG Energy Solution.
The Chinese company supplies batteries to Tesla, Ford, Mercedes, Hyundai, Geely, SAIC, Nio…
Key Takeaways from CATL’s Success:
The importance of long-term expertise and strategic partnerships in building a competitive battery business.
Prioritize skilled engineers and scientists over traditional management-heavy structures. More engineers, fewer MBAs.
Avoid distractions. Focus is key to master the core technology and business.
China invests into champions. Europe should apply what they did with Airbus to the battery market.
Now, let’s look at this week's battery market developments.
Battery Industry Pulse: Weekly Roundup
Metals
E3 Lithium has successfully produced battery-quality lithium carbonate from Leduc brines using its demonstration-scale equipment in Canada - link
Mangrove Lithium announced the closing of a $35M financing to begin construction of groundbreaking lithium refining plant in British Columbia - link
Standard Lithium and Equinor announced Smackover Lithium as the new name for their joint venture developing DLE projects in Southwest Arkansas and East Texas - link
Battery
Paolo Cerrutihas announced his decision to step aside from his role as CEO of Northvolt North America - link
Northvolt asks shareholders for $1.3 Billion for next two years - link
Volvo Cars takes full ownership of Novo Energy - link
CATL and DHL strengthen strategic partnership to facilitate sustainable logistics globally - link
Hyundai opens an EV battery pack plant in India - link
BESS
esVolta secures $243 Million preferred equity investment for three standalone battery energy storage projects - link
Passenger EVs
Nepal imports more electric vehicles than petrol vehicles - link
Rivian CEO explains why he isn’t concerned about Trump’s EV policies - link
Commercial EVs
New Flyer of America announces that Long Beach Transit has signed a contract for 30 battery-electric buses - link
Marine
Europe and North Africa to be connected with electric ferries - link
Charging infrastructure
German DIN working with Nio on German battery swapping standards - link
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