The global leader in power batteries is ambitiously transforming itself from a battery manufacturer into a foundational infrastructure provider for a new energy society.

As the world's foremost power battery producer, Contemporary Amperex Technology Co.,Ltd. (CATL) earned the moniker "King Ning" back in 2021. By 2025, its share of the global power battery market had surged to 39.2%. In that same year, the combined global market share of over a dozen major Chinese automakers was less than 30%, highlighting a vast profitability gap. CATL's 2025 net profit reached 72.2 billion yuan, surpassing the combined profits of the top ten Chinese automakers by market capitalization.

However, what has drawn the most attention recently is not its continued dominance in batteries, but its aggressive expansion into new business frontiers.

In transportation, its batteries have expanded from passenger vehicles to commercial vehicles like electric heavy-duty trucks, and further into electric ships and aircraft. It is also building out a transportation energy replenishment network through battery swap stations.

In the power sector, CATL holds over 30% of the global market for energy storage batteries, and its energy storage system integration business grew 160% in 2025, becoming a powerful second growth curve.

Within power grids, the company is an industry leader in building distributed microgrids and exploring grid-forming energy storage stations, while actively developing flexible grid and virtual power plant technologies.

For industry, it provides green energy and zero-carbon operation solutions to a growing number of mines, steel plants, cement factories, chemical plants, and industrial parks.

In critical minerals, CATL is investing heavily to establish a resource group for supply chain security while accelerating its battery recycling and resource circulation initiatives.

In AI, it has invested over 10 billion yuan to become the largest shareholder in veteran data center operator Century Interconnect and in leading intelligent computing center power supplier Zhongheng Electric, securing its entry into the era of integrated computing and power.

CATL has also signed zero-carbon city strategic cooperation agreements with numerous cities including Xiamen, Lanzhou, Yancheng, Changzhou, Wuhu, Jiaxing, Dongying, and Yibin.

Its global footprint is accelerating, with investments in manufacturing plants in Germany, Hungary, Spain, and Indonesia, and energy storage projects underway in Australia, the UAE, Brazil, and elsewhere. Its Hong Kong listing in May 2025 provides a more flexible capital source for overseas expansion.

Chairman Zeng Yuqun states that CATL is committed to becoming "a zero-carbon technology company that makes outstanding contributions to humanity's new energy cause."

Defining the Business Scope

The expansion is driven by a vision to contribute to the new energy cause. The initial phase involves the industrialization of new energy in transportation and power. The next phase is the "new-energy-ization" of industries. Every expansion stays within this vision and is pursued only when the company possesses a core competitive edge, aiming for uniqueness or superiority, not low-price competition.

The goal is for 80% of its offerings to be unique and 20% to be superior, though the current ratio is likely the reverse. The company avoids areas outside its core competency, such as life sciences. Its foray into AI and robotics is centered on energy solutions, not competing directly in AI algorithms, recognizing that AI ultimately consumes vast amounts of energy.

The underlying logic for expansion follows three rules: the target market must be large, have high entry barriers, and involve technology adjacent to CATL's existing expertise. These principles guide all new ventures.

Exploring Technological Frontiers

The primary focus remains on battery technology, the company's foundation. Concurrently, significant effort is directed towards becoming the world's best in providing energy solutions for AI Data Centers (AIDC).

On solid-state batteries, Zeng clarifies they are not the ultimate "holy grail." The shift from liquid to solid electrolyte is just one aspect, with many challenges remaining in cathodes, anodes, and especially the solid-solid interface. Commercialization depends on solving key scientific and technical problems, not on a predetermined timeline. It is event-driven, not time-driven.

Current solid-state battery technology is at a maturity level of 4 out of 9 (TRL 4), far from mass production or commercial viability. Beyond solid-state, there is ample room for advancement in areas like high-voltage battery systems, which could significantly increase energy density.

Sustaining High Growth

The new energy construction boom is expected to last for decades. With global electric vehicle penetration around 20% (and lower for trucks, ships, and planes), the growth runway for electrification is long. New industries like robotics currently use inadequate batteries. The transition from fossil fuels requires massive grid upgrades, and the energy demand from AI and data traffic (every "token" consumes energy) presents virtually limitless growth potential, likely extending to 2060 when carbon neutrality is targeted.

Lessons from the Solar Industry

The power battery industry risks following the path of solar photovoltaics (PV) into destructive price wars if not careful. The root cause in PV was insufficient intellectual property (IP) protection, leading to rampant copying and cutthroat competition.

Similar attempts exist in batteries, with competitors copying technology at 60-70% efficacy and competing on price. CATL resists price wars by focusing on IP protection, legal action, advocating for national policy, and building an ecosystem. Its battery-as-a-service (BaaS) or swap model, where batteries are leased not sold, is a key differentiator that proves product quality and builds customer trust.

Evolving from Battery Maker to Zero-Carbon Tech Firm

A zero-carbon technology company has a broader mandate than a battery company. Batteries are one foundational pillar of a new energy society; the company must help build the other pillars. Currently, 80-90% of the required capabilities are under development, with gaps filled through strategic acquisitions.

Batteries are a core driver because they enable the critical "time-shifting" of energy, which traditional grids cannot do. The key technology for grid flexibility transformation is energy storage.

CATL is testing independent microgrids, like the project in Dongying. While China's robust main grid limits the domestic market for such fully independent systems, overseas demand is high, especially in regions with expensive electricity. The company is developing the technology and standards in China first before global deployment.

The transition from a hardware company to an integrated systems provider is challenging but underway through subsidiaries like Times Green Energy, which has been operating for nearly five years, managing its own solar, wind, storage assets, and grid interaction software.

Securing Critical Mineral Supply

The notion that new energy simply swaps oil dependency for lithium, cobalt, or nickel dependency is flawed. Unlike fossil fuels, these minerals are recyclable. In a circular economy, once the penetration of electric vehicles reaches high levels and batteries (with an ~8-year lifecycle) are retired, a significant portion of raw materials can come from recycling. By around 2042, an estimated 50% of mineral resources could be sourced from spent batteries.

CATL is actively securing key mineral supplies (lithium, nickel, cobalt) through a dedicated resource company and partnerships, adopting a dual approach to mitigate geopolitical supply risks.

Advocating for Globalization

Despite a fragmenting global landscape, CATL remains committed to globalization. The company believes that strong, long-term commercial partnerships are more reliable than inter-governmental relations, which can change with elections. It adapts its market entry strategies (e.g., joint ventures, licensing) as needed but maintains that technological leadership, continuous innovation, and learning are the best defenses against "teaching the apprentice to starve the master."

While a perfect "40-30-30" distribution of benefits between the company, resource country, and host market is difficult, flexible models are employed based on local requirements, such as local production mandates for certain market segments.

The company does not set rigid targets for domestic vs. international revenue share, instead following market demand like "nomads following water and grass." The core is creating value for customers, enabling them to succeed, which in turn builds a prosperous共生 (symbiotic) ecosystem.

The Driving Force of Commerce

Ultimately, the vision of a zero-carbon society must be driven by commercial viability. Business is the core; profit is the "oxygen" that attracts participants to build the ecosystem, making the grand vision achievable.

The Imperative of Striving

In the face of intense global competition in technology and products, where CATL does not necessarily have more resources or innate advantage, the only path is relentless striving and hard work. The most time-consuming decisions are often technological roadmap choices, such as whether to pursue sodium-ion or solid-state batteries, given the massive investments involved.

The greatest internal concern for realizing such a grand vision is organizational capability, talent density, and the team's learning ability. A lack of deep understanding, passion, and clarity is the real risk. While external challenges exist, internal factors are the primary determinants of success.