CATL Posts Record $100B Net Profit in 2025, But Concerns Loom Behind the Glow

In 2025, Contemporary Amperex Technology Co. Limited (CATL) reported revenue exceeding RMB 420 billion, net profit of RMB 72.2 billion—a 42% year-over-year increase—and cash flow of RMB 133.2 billion, far surpassing the industry average. Its net profit margin of 17% significantly outpaced the automotive industry’s average of 4.1% and even exceeded the combined profits of 13 major automakers, highlighting a severe imbalance in profit distribution across the supply chain. In response, automakers are increasingly building their own battery production capacity or supporting second- and third-tier suppliers to reduce reliance on CATL. Despite widespread overcapacity across the industry, CATL maintained an exceptionally high capacity utilization rate of 96.89%. With 321 GWh of new capacity under construction, customers are required to make advance payments to secure supply. CATL’s “quasi-financial” business model effectively shifts financial pressure onto its upstream and downstream partners. Although CATL has ranked first globally in the energy storage market for five consecutive years, this segment has become a fiercely competitive “red ocean” marked by intense price wars. Meanwhile, the company faces growing challenges overseas, including regulatory barriers in the U.S. and Europe, as well as strategic risks stemming from competition over solid-state battery technology pathways.