Behind CATL's seemingly modest pay raise of 150 yuan per month lies a strategic talent defense move that costs just 0.48% of its profits, sparking widespread discussion about the trillion-yuan battery giant's approach.

The email from CATL's HR department announcing a uniform monthly salary increase of 150 yuan for employees in grades 1 to 6 starting January 1, 2026, has gone viral. For a global power battery leader with a market cap exceeding 1.75 trillion yuan and daily profits of about 180 million yuan in the first three quarters, this amounts to an annual cost of 23.76 million yuan across its 132,000 employees—equivalent to less than two days' net profit (490.34 billion yuan in Q1-Q3 2025).

**1. Context of the Raise** Amid its pivotal transition, CATL launched its second-generation Shenxing ultra-fast charging battery and other advanced products in 2025. The company reported 283.17 billion yuan in revenue (up 9.28% YoY) and 49.03 billion yuan net profit (up 36.2% YoY) for Q1-Q3 2025, maintaining its eight-year streak as the world’s top power battery supplier.

**2. Practical Impact** Production line workers could see monthly earnings rise to ~7,500 yuan (a 5% increase), with overtime pay potentially amplifying gains beyond the base 150 yuan. However, the 1,800 yuan annual raise contrasts with CATL’s 2024 average salary hike of 10,600 yuan (reaching 236,300 yuan per employee).

**3. Competitive Pressures** The power battery sector’s rivalry has escalated into a multidimensional battle involving technology, costs, and geopolitics. Despite a 9.7% revenue dip in 2024, CATL’s net profit grew 15.01%, even as China’s top three players now command 76.1% market share.

**4. Industry Challenges** Manufacturing stability hinges on retaining skilled workers—each 1% reduction in turnover saves millions in training costs. CATL’s raise, timed for year-end production peaks, acts as a retention tactic. J.P. Morgan raised its CATL stock target to 520 yuan, citing its valuation appeal and cost management.

**5. Broader Implications** While criticized online, the raise signals profit-sharing with frontline staff amid economic slowdowns. CATL’s 41-billion-euro Spanish plant with Stellantis underscores global ambitions, even as it trails Tesla Energy (1.3 million yuan avg. salary) and LG Energy (1.1 million yuan) in top-tier pay. For new graduates, CATL offers 60,000–100,000 yuan annually, highlighting the challenge of nurturing talent.

Despite its small scale, the move sets a precedent for equitable growth in新能源—evidenced by a 2.62% stock surge post-announcement. In a sector torn between高端人才 wars and基层 labor shortages, this 0.48% investment may fortify CATL’s throne.

Ultimately, any raise beats cuts—especially as peers slash jobs. Here’s hoping CATL leads not just in technology, but in fostering shared prosperity.