CATL, the world’s largest supplier of electric-vehicle batteries, continues its expansion with ongoing factory investments despite slowed growth in the global EV market, Nikkei Asia reports. The Chinese company posted a record-high 30.4 billion yuan ($4.22 billion) net profit in its January-June earnings, while revenue grew 17% in its core EV battery segment.
The battery manufacturer invested 9.7 billion yuan in factories during the first half of 2025, marking its third consecutive year of approximately 8-9 billion yuan in first-half capital spending on plants. However, this amount represents a decline from the same period in 2022, when the company invested 19.9 billion yuan. One reason behind the 2022 data was CATL’s rapid expansion in capacity to meet China’s booming EV demand.
“Capital spending this year will be higher than in 2024,” CATL executives told investors during a Wednesday conference call.
With domestic expansion in China largely complete across its 11 plants, CATL has shifted focus to international markets. The company began operations at its first overseas factory in Thuringia, Germany, in 2022, while construction continues on a Hungarian plant expected to cost up to 7.3 billion euros ($8.4 billion). Recently, CATL broke ground on an Indonesian factory, a $5.9 billion investment in collaboration with local partners.
CATL’s production capacity for batteries reached 345 gigawatt-hours during the first half of 2025, representing a 7% year-over-year increase and more than double the 154 GWh reported for the same period in 2022. An additional 235 GWh is currently under construction.
While CATL maintains its aggressive strategy, competitors have exercised caution. South Korea’s LG Energy Solution withdrew from a planned multibillion-dollar investment in Indonesia, while Panasonic Holdings has only partially activated its new Kansas factory and placed plans for a third U.S. facility on hold.
The strategic investments have yielded significant market gains for CATL, particularly in Europe. “Our share of the automotive battery market in Europe has expanded from 17% in 2021 to 38% in 2025,” CATL management noted.
CATL’s EV batteries claimed a 38.1% global market share from January to May 2025, according to South Korea’s SNE Research. This places it well ahead of second-ranked BYD at 17.4% and LG Energy Solution at 10%.