Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery maker, has seen its Shenzhen-listed shares rise nearly 75% since April, adding about US$110 billion in market value.

CATL, based in China, supplies batteries for electric vehicles and energy storage systems.

The company’s stock now trades at around 22 times its one-year forward earnings, which is lower than global battery peers, according to Bloomberg Intelligence.

Analysts at BNP Paribas and JP Morgan say this valuation does not fully reflect CATL’s growth potential, especially as demand for energy storage battery systems increases.

Global Market Insights projects the energy storage market will reach US$5.1 trillion by 2034, up from US$668.7 billion in 2024.

Recent Chinese government plans to boost energy storage capacity and related investments have also supported CATL’s rally.

🔗 Source: Bloomberg

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