CATL accelerates overseas expansion as it surpasses China’s booming EV market

CATL is doubling down on its global expansion efforts as it seeks more growth in overseas markets. With CATL’s chairman now leading the effort, the company is making overseas growth a top priority as it outpaces China’s growing EV market.

After installing nearly 300 GWh of batteries in 2023, up 41% year-on-year, CATL was the top power battery producer.

Last year, the world’s largest EV battery maker, CATL, had 36.8% of the market. He was also the only producer with a +30% share. Despite incoming competition, CATL’s market share grew to 36.2% in 2022.

However, as CATL outgrows China’s growing EV market, the company is looking for growth overseas.

According to local media reports (via CnEVPost), CATL is adding two new factories overseas as it looks to expand beyond its domestic market.

The news comes as CATL expects less growth in China as new, smaller suppliers enter the market. CATL’s growth in China is mainly driven by the growth rate of the country’s NEVs (including hybrids) and the growth of rival BYD.

Although higher NEV sales typically equate to more growth for CATL, rival BYD is rapidly gaining market share, negatively impacting CATL.

CATL is accelerating its global expansion plans

CATL is adding two new factories to the six previously announced, according to a local media firm Late post.

The two new plants will be in addition to CATL’s plans for six overseas plants already announced: Germany, Thailand, Hungary, Indonesia and two in the US (with Ford and Tesla).

Robin Zeng, CATL’s president, is now spearheading the company’s overseas offensive. Four co-presidents report to Zeng: Tan Libin (overseas sales manager), Huang Siying (overseas infrastructure), Feng Chunyan (overseas base operations) and Zeng Rong (overseas procurement).

According to the post, CATL’s next plant will be in Spain as a joint venture with Stellantis. It is also considering a wholly owned battery cathode materials facility in Morocco, which would supply its European battery plants.

CATL is also looking to drive its global growth through licensing of its technology. The company has been in talks with about 10 OEMs to license its technology.

Last month, a CarNewsChina The report claimed that General Motors was in talks with CATL to license its LFP battery technology.

The plans reportedly included a joint North American factory to build the batteries. Although no details were provided, the report said it is likely to be similar to Ford’s $3.5 billion investment to build an LFP battery plant with CATL in Michigan.

A special report from Late post Earlier this year it claimed CATL cut the cost of its batteries to 400 yuan ($55) per kWh, compared to 600 yuan ($83) per kWh for NCM batteries.

With nearly one in three cars expected to be electric by 2030, CATL still has much more room for growth.