CATL (HKG: 03750) shares are soaring more than 5%. At the time of writing, the stock is up 5.06% to HKD 706.5, with a turnover of HKD 2.124 billion.

Industry data indicates that total sales across nine European countries reached 305,000 units in May, representing a year-on-year and month-on-month increase of 33% and 6% respectively, exceeding expectations. Full-year growth is forecast to surpass 35%. Consequently, demand for power batteries remains robust, with an estimated annual growth of 20-25%.

Demand for energy storage is also strong, with first-quarter shipments hitting 216 GWh, doubling year-on-year. Global demand has been revised upwards to approximately 1,150 GWh, representing growth of 70-80%.

Production schedules for June show a month-on-month increase of 5-10%, with July estimates holding steady at the same growth range. Full-year production is projected to grow by 35-40%.

Previous analysis suggested that CATL's battery production and shipments would remain strong in the second half of the year, with demand for its Energy Storage Systems highlighted as a key driver.