Tesla battery supplier CATL full-year profit more than doubled on robust battery demand from global automakers

Chinese battery giant Contemporary Amperex Technology (CATL), a major Tesla supplier, reported its full-year profit more than doubled on robust battery demand for its electric vehicle batteries from global automakers.

CATL booked a total revenue of 130.3 billion yuan for last year, representing year-on-year growth of 159.06%. Net profit for 2021 grew 185.34% year-on-year to 15.93 billion yuan.

In 2021, CATL’s lithium-ion battery sales were 133.4 GWh, up 184.8% year-on-year, with power battery system sales of 116.7 GWh, up 162.5% year-on-year.

Its lithium-ion battery sales generate annual income of 15.4 billion yuan, up 350.7% year-on-year. The energy storage business achieved an annual income of 13.6 billion yuan, soaring 601% year-on-year. 

CATL attributed the income growth of its lithium-ion battery to expanded battery cell production capacity, and robust demand in battery that boost the price of lithium, cobalt and nickel.

In June 2021, it has extended a partnership agreement with Tesla to provide battery packs for Model 3 sedans and Model Y sport-utility vehicle made in Shanghai Giga factory until December 2025. Apart from Tesla, the company has also strengthened its strategic partnerships with automakers Ford Motor, Hyundai, Mercedes-Benz, Fisker Inc, as well as Chinese automakers Great Wall Motor, NIO Inc and Li Auto.

During the reporting period, CATL has increased its annual production capacity of batteries from 69.10 GWh in 2020 to 170.39Gwh in 2021.

CATL’s power battery department generated an annual income of 91.4 billion yuan, representing year-on-year growth of 132.06%.

In a separate announcement, CATL announced its plan to add another facility in the southeastern port city of Xiamen, Fu Jian province with total investment of 13 billion yuan. The facility will focus on building assemble line for energy storage and power battery system.

 Meanwhile, CATL also launched its own EV battery swapping business in Xiamen via its wholly-owned subsidiary “EVOGO”.

The first four EVOGO battery swap stations are located in the Siming Huli, and Haicang Districts of Xiamen.

The company has already started phase 1 production at its new EV battery factory in Fujian province, which will be the world’s largest EV battery factory with an annual production of 120 GWh, CATL claimed.

In September 2021, Meng Xiangfeng, secretary to chairman of CATL said it will put a sodium-ion battery production line into operation in 2022.

Sodium-ion batteries could become a viable solution for the electric vehicle industry in the future as it can help EV companies to reduce cost significantly and make electric vehicle more affordable. Sodium-ion batteries contain no lithium, cobalt or nickel, which are the primary metals used in nickel-cobalt-aluminum (NCA), nickel-cobalt-manganese (NCM) and lithium iron phosphate (LFP) batteries.