EV Battery Giant CATL Sees Upwards Of 200% Profit

The business of providing juice to EV has been pretty lucrative over the last couple of years. One such benefactor from the boom in EV consumption is the world's biggest EV battery manufacturer, Contemporary Amperex Technology Co Ltd. (CATL). In this 3rd Quarter CATL is expected to see a surge in net income in tunes of 9.8 billion Yuans. 

It is predicted that CATL, which has heavy investments in expanding its battery production capacity, would see an upward jump of 200% profit in a stock filing last Monday. Furthermore the Fujian-based outfit added that the net income could surpass 18 billion Yuan in the nine months through September. This is an increment of 132% compared to the same period in 2021.

In view of this CATL has committed spending commitments of about $20 billion in the coming years to build newer and bigger factories in China and abroad which includes the ones in Hungary with Mercedes-Benz AG. It also has shown interest in tapping into the resource-rich Indonesia. Last August, CATL had also unveiled the half-year results which shows a good recovery after having a shaky start to the year. The last six-months profit till June was 82% to 8.17 billion. This could also be due to the way CATL handled itself despite brazing a volatility of raw material costs.

To add on, South Korean battery maker LG Energy Solution Ltd. is also reaping the benefits from this boom with a reported third-quarter earnings last week which easily surpassed profit and sales expectations. This is further helped by the ever growing demand for EV and a relatively weak Korean Won which at some level offsets the rising commodity prices.