Tesla battery partner CATL doubles revenue in Q4

Photo credit: Tesla

Contemporary Amperex Technology (CATL), a major supplier of batteries to Tesla, said its revenue doubled to US$17 billion in its fourth quarter from a year ago. Its net profit also shot up about 61% in the quarter to reach US$1.9 billion.

For the full year, the company’s revenue was 152% higher than in 2021 at US$47.2 billion, while its net profit almost doubled to US$4.4 billion.

Most of the company’s revenue comes from its energy storage operations and battery systems, materials, and recycling services. Its battery systems business made about US$33.4 billion – a roughly 156% increase – in total revenue last year.

According to Bloomberg, CATL had a 37% share in the global EV battery market in 2022. South Korea’s LG Energy and China’s BYD both trailed with 13.6% each.

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Notably, CATL is the main supplier to Tesla. The American electric-vehicle firm in 2021 extended its supply deal with CATL to last until 2025. Tesla at the time was building its Model 3 and Model Y models in Shanghai.

In March last year, CATL also said it aims to build a US$5 billion facility in the US to boost production. Later that year, Tesla announced plans to use CATL’s battery tech for Model Y vehicles, replacing the former’s own battery packs.