CATL Responds to "Automakers Work for Us" Criticism: Highlights Value Creation and Tech Edge

On April 22, Luo Jian, General Manager of CATL’s Marketing Department, addressed the controversy over automakers “working for battery makers” during a media briefing. He stated that the company’s core focus is on value creation and emphasized that whether CATL delivers sufficient value should be judged by the market. According to publicly available data, CATL reported revenue of RMB 423.7 billion in 2025, up 17.04% year-over-year, and net profit of RMB 72.2 billion, a 42.28% increase from the previous year—translating to nearly RMB 200 million in daily net profit. This profit exceeds the combined net earnings of 13 A-share-listed Chinese automakers and is roughly twice BYD’s net profit and four times Geely’s. Earlier analyses indicated that Chinese automakers (excluding their battery businesses) account for only around 10–20% of total industry profits. In 2024, CATL alone contributed USD 7.1 billion of the total USD 14.7 billion in profits generated by Chinese automakers ranked in the Fortune Global 500. Luo noted that power batteries account for 30% to 40% of a vehicle’s total cost but bear significant risks, including raw material price volatility, high R&D investment, and global capacity deployment. CATL has built competitive moats through technological innovation, launching products such as Qilin batteries, Shenxing ultra-fast-charging batteries, and sodium-ion batteries. On April 21, the company unveiled its third-generation Shenxing ultra-fast-charging battery, third-generation Qilin battery, Qilin Condensed Battery, second-generation Xiaoyao super hybrid battery, and an integrated “Ultra Swap” all-scenario energy replenishment network plan. Although some automakers—including BYD, Geely, and Chery—are accelerating in-house battery development or diversifying suppliers to reduce reliance on CATL, consumer recognition of the CATL brand remains a key market advantage. Meanwhile, competitors such as CALB and EVE Energy are rapidly closing the gap, gradually fragmenting market resources.