CATL Profit Climbs on Surging Demand for Energy-Storage Batteries

By Jiahui Huang

Contemporary Amperex Technology, the world's largest battery maker, reported sharply higher profit in the first half as booming demand for energy-storage systems and resilient electric-vehicle battery sales offset weakening appetite for EVs in China.

Net profit surged 42% from a year earlier to 43.28 billion yuan, equivalent to $6.39 billion, the company said Friday. Revenue increased 55% to 276.92 billion yuan.

The strong earnings underscore the Chinese battery maker's ability to outgrow the broader EV market, which is experiencing slowing demand, especially in China.

CATL has benefited from strong market share, with new-energy vehicles--a term encompassing EVs and plug-in hybrids--continuing to outsell traditional gasoline-powered cars in China, and demand surging for energy-storage systems in data centers amid the AI infrastructure buildout.

At the same time, growing concerns about energy security have accelerated global investment in renewable energy and battery storage. China's ESS battery shipments more than doubled in the first four months of 2026 due to rising energy-storage demand and a shift in investments away from mature EV markets, according to a recent note from Bernstein.

CATL has also pushed to expand overseas to sustain its growth. The company is ramping up production at its Hungary plant, expanding battery-swapping infrastructure in Europe and pushing ahead with commercialization of sodium-ion batteries.

Shares of CATL have risen 24% in Hong Kong so far this year, outperforming the Hang Seng Index's nearly 3% decline.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

July 24, 2026 08:00 ET (12:00 GMT)