In a recent discussion, Zeng Yuqun, Chairman of Contemporary Amperex Technology Co.,Ltd. (CATL), was asked about concerns regarding "teaching the apprentice and starving the master" during the company's globalization process. Zeng responded that such an outcome is only possible if the master fails to learn and improve. He offered a counterexample: during the era of internal combustion engine vehicles, Europe possessed highly advanced engine technology, with standards like Euro 2 and Euro 3, which China followed as National 2 and National 3. Europe had been teaching China for decades, yet Europe's engines remained the best, European cars commanded the highest prices, and there was no instance of the master being starved. Europe had excelled in the ICE route, maintained its advantage, and continued to progress. Similarly, in the battery technology route, CATL holds a significant technological advantage and aims to sustain it.

A Conversation on Transformation

The dialogue centered on CATL's evolution from a battery manufacturer into a foundational infrastructure company for a new energy society. As the world's leading power battery producer, CATL commanded a 39.2% global market share in 2025, with its net profit of 72.2 billion yuan surpassing the combined profits of the top ten Chinese automakers by market capitalization. The company's most notable recent development, however, is its aggressive expansion beyond its core battery business.

Its reach now extends across transportation (commercial vehicles, ships, aviation, and battery-swap networks), power (energy storage with over 30% global market share), grid technology (leading in distributed microgrids and grid-forming energy storage), industrial solutions (green energy for factories), critical minerals (securing supply chains and advancing recycling), and AI (major investments in data center and power supply companies). CATL has also partnered with numerous Chinese cities on zero-carbon city initiatives and accelerated global manufacturing and project deployment, including a 2025 Hong Kong listing to fund overseas expansion.

Defining Business Boundaries

When asked about the logic behind this expansive diversification, Zeng stated it all aligns with the vision of contributing to humanity's new energy cause. Expansion into new areas is contingent on possessing core competencies, targeting large markets with high barriers to entry, and leveraging adjacent technologies. He emphasized that CATL avoids areas outside its expertise, such as life sciences, and focuses on where it can offer unique or superior solutions, like providing energy solutions for AI data centers rather than competing in AI chips.

Perspectives on Battery Technology

On battery technology frontiers, Zeng downplayed the immediate promise of solid-state batteries, describing numerous unresolved technical challenges, particularly with solid-solid interfaces. He noted that solid-state battery technology is currently at a low maturity level (TRL 4) and that commercialization depends on event-driven breakthroughs, not arbitrary timelines. He sees more near-term potential in advancing existing lithium-ion technologies, such as developing higher-voltage systems.

Sustained Growth Trajectory

Zeng believes the high-growth phase for new energy is far from over. With global electric vehicle penetration around 20% and much lower for trucks, ships, and aircraft, alongside massive demand from energy storage, grid modernization, robotics, and AI data centers (where every computational "token" consumes energy), he sees growth potential extending potentially to 2060, the carbon neutrality target.

Avoiding the Pitfalls of Other Industries

Addressing whether the power battery industry could suffer the same fate as solar photovoltaics (PV), which faces intense price competition and losses, Zeng acknowledged the risk stems from inadequate intellectual property protection leading to rampant copying and low-price competition. He argued that CATL's dominant ~40% market share and refusal to engage in price wars help stabilize the industry. The company's strategy includes legal action to protect IP, advocating for stronger national policies, and building an ecosystem, exemplified by its battery-as-a-service (BaaS) swap model, which relies on and demonstrates battery quality.

From Battery Maker to Zero-Carbon Tech Firm

Zeng explained that positioning CATL as a zero-carbon technology company reflects a broader ambition. The battery is just one pillar of a new energy society. The company is actively building or acquiring capabilities across other pillars, with energy storage being a key technology for grid flexibility. While China's robust main grid limits the immediate domestic market for independent microgrids, CATL is developing such technology in China to perfect standards and products for a vast overseas market where electricity prices are much higher.

Securing Critical Minerals

Zeng dismissed concerns that new energy simply shifts dependency from oil to minerals like lithium, cobalt, and nickel, highlighting that these minerals are recyclable, unlike combusted fossil fuels. He projected that by 2042, 50% of battery mineral needs could be met through recycling. To ensure supply chain reliability amid geopolitical shifts, CATL is taking a more direct approach by establishing its own resource company while maintaining partnerships.

Commitment to Globalization

On navigating a fragmenting global landscape with local content rules, Zeng expressed no fear of "teaching the apprentice." The key, he stated, is for the "master" to keep learning and advancing. He pointed to Europe's enduring engine supremacy as proof. While acknowledging global supply chain security concerns, he argued for the primacy of commercial relationships over political cycles. CATL adapts through business model innovation, such as flexible production and partnership structures, rather than rigid formulas. The company follows market demand globally, aiming to create value for customers everywhere.

The Core Driver: Commercial Viability

Zeng concluded that the vision of a zero-carbon society ultimately depends on commercial feasibility. Profitability is the "oxygen" that attracts participants to build the ecosystem. On corporate culture, he noted that intense competition in technology and products necessitates a striving spirit, akin to that seen in Silicon Valley, to compensate for not necessarily having more resources or intelligence than global rivals.

Internal Focus and Key Decisions

Reflecting on CATL's nearly 15-year journey, Zeng identified technology roadmap decisions—such as committing to sodium-ion or solid-state battery development—as the most time-consuming and critical. For realizing the grand vision, his greatest concern is internal: organizational capability, talent density, and the team's learning ability. He emphasized that understanding concepts deeply, maintaining passion, and focusing on execution are paramount, as external challenges can always be overcome.