Morgan Stanley released a research report stating that according to media reports, CATL (03750) may launch NCM811 battery pack products next year, increasing the battery capacity of Extended Range Electric Vehicles (EREV) to 80kWh, up from the current 30-50kWh per unit. According to Morgan Stanley, CATL has not yet confirmed this news. Morgan Stanley reiterates its target price of 425 RMB for CATL's A-shares (300750.SZ) and maintains an "Overweight" rating for its H-shares.

Morgan Stanley noted that following CATL's launch of Freevoy battery products for the EREV market this year, the firm believes next year's new products could further enhance the company's driving range to over 600km. The new technology can be combined with the most advanced NP3.0 (no propagation) technology to improve safety and longevity features, thereby increasing cycle life.

Morgan Stanley views this as another example of CATL demonstrating its powertrain solution capabilities, noting that the company continuously iterates with the goal of providing better performance for powertrain systems.