In a recent dialogue, Contemporary Amperex Technology Co., Ltd. (CATL) Chairman Zeng Yuqun addressed the company's strategy and market position.

Zeng stated that CATL does not participate in price wars, a tactic he claims competitors persistently use. He argued that rival products often offer only 60-70% of CATL's performance yet are priced 10-20% lower.

CATL's dominant global market share in power batteries, nearing 40%, positions it as a key industry stabilizer. The company reported a net profit of 72.2 billion yuan in 2025, surpassing the combined profits of the top ten Chinese automakers by market value.

Expanding Business Horizons

CATL is transforming from a battery manufacturer into a foundational company for a new energy society. Its expansion spans multiple sectors.

In transportation, its battery applications extend from passenger vehicles to commercial vehicles like electric heavy-duty trucks, electric ships, electric aviation, and a battery-swap network.

In the power sector, CATL holds over 30% of the global energy storage battery market. Its system integration business grew 160% in 2025, forming a strong second growth curve.

For power grids, the company leads in distributed microgrid development and grid-forming energy storage exploration, while actively investing in flexible grid and virtual power plant technologies.

In industry, CATL provides green energy and zero-carbon operation solutions for mining, steel, cement, chemical plants, and industrial parks.

In critical minerals, it has invested heavily to secure supply chains and is accelerating battery recycling and resource circulation.

In AI, CATL has invested over ten billion yuan, becoming the largest shareholder in data center firm Century互联 and leading power supplier for AI computing centers, securing a role in the era of computing-power synergy.

The company has also signed zero-carbon city strategic cooperation agreements with multiple Chinese cities and is accelerating global expansion with factories in Germany, Hungary, Spain, and Indonesia, alongside energy storage projects worldwide. Its 2025 Hong Kong listing provided more flexible capital for overseas growth.

Defining the Scope of Expansion

When asked about the logic behind this broad expansion, Zeng explained it aligns with the vision of contributing to humanity's new energy cause. He emphasized that any new venture must meet three criteria: a large addressable market, high barriers to entry, and adjacent technology where CATL can leverage existing expertise. He stated the company avoids areas like life sciences where it lacks core competency.

Perspectives on Battery Technology

On technology, Zeng clarified that solid-state batteries are not the ultimate solution, citing complex challenges like solid-solid interface issues. He emphasized that innovation is event-driven, not time-driven, and that commercialization requires overcoming technical, product, and cost hurdles. He noted many avenues remain for improving existing lithium-ion battery technology, such as developing higher-voltage systems.

Sustained Growth Trajectory

Zeng expressed confidence in long-term, double-digit growth for the new energy sector, citing low penetration rates in vehicles, ships, and aircraft, alongside massive potential in energy storage, robotics, and AI data centers, where every computational token consumes energy.

Avoiding the Pitfalls of Other Industries

Addressing concerns that the power battery industry might follow光伏's path into losses due to cutthroat competition, Zeng pointed to weak intellectual property protection as the root cause. He stated that CATL's refusal to engage in price wars helps stabilize the industry. The company combats low-quality competition through legal action, advocacy, ecosystem building, and its battery-as-a-service (battery leasing) model, which relies on product quality and safety.

Transition to a Zero-Carbon Tech Company

Zeng described the shift from a battery company to a zero-carbon technology company, where batteries are one foundational pillar. He identified energy storage as the key technology for grid flexibility改造. While independent microgrids have more immediate market potential overseas due to higher electricity prices, CATL is developing and testing the technology domestically to establish standards.

Securing Critical Mineral Supply

Zeng dismissed the notion that new energy simply swaps oil dependency for lithium or cobalt dependency, highlighting that battery minerals are recyclable, unlike fossil fuels. CATL is vertically integrating into mineral resources to enhance supply security amid geopolitical uncertainties, while also relying on partners.

Commitment to Globalization

Despite a fragmenting global landscape, Zeng stressed the imperative to promote globalization. He believes commercial partnerships are more reliable than intergovernmental relations. The company adapts its business models, like local production partnerships, to meet regional requirements, viewing challenges as opportunities for商业 innovation.

The Core Driver: Commercial Viability

Zeng asserted that commercial success is the core driver for realizing the zero-carbon vision. Profitability attracts participants to build the ecosystem, just as oxygen sustains life on an island.

The Necessity of Dedication

On corporate culture, Zeng emphasized the necessity of a dedicated, striving spirit in a fiercely competitive global market, drawing a parallel to the intense work ethic in Silicon Valley. He identified organizational capability and talent density as the primary internal challenges for achieving CATL's grand vision, viewing external factors as surmountable.