Catl Battery Giant in China is expanding in the world: this is why it matters

The largest electric car batteries manufacturer (EV) will get international expansion and can shake the EV market in this process by displaying the exchange technology of batteries.

China Amprex Technology Co. Ltd. (CATL) is a major player in global transition to more sustainable transportation, with a market share in the EV sector for About 38 %. Catl customers include international players such as Timingand Volkswagen and BMWWith the company Technology Many western competitors.

Despite its great impact on the EV industry, the company has mostly flew under the radar until May this year, when it launched the largest initial general offer in the world (IPO) for the year 2025 so far in Hong Kong.

Public subscription raised $ 41 billion from Hong Kong ($ 5.2 billion), after Catl shares rose and the customization option was fully practiced.

Here is what Catl has in the work that follows the public subscription.

For the first time, it was announced that the company was investing 7.6 billion euros (8.2 billion dollars) It is expected to start production this year.

The battery maker has already created a fully owned manufacturing base in Germany, which was opened for the first time in 2023. It has also announced plans to build a battery factory in Spain through Joint project with Stelantis.

Bill Rousseau, founder and CEO of Automobility, Consulting for Investment, said that Catl expansion plans seem designed to maintain its global leadership and size, noting a limited growth momentum in its local and consistent market.

“The early engine feature of Catl helps in locking long -term contracts, pricing power is stronger in Europe, and supported higher margins compared to China,” Russo told CNBC.

“The Hungary Factory is a strategic gate in the European Union market,” he added. “Hungary provides proximity to the main original equipment manufacturers, government incentives and reducing employment costs – which makes it an attractive position for Chinese players and batteries looking for a foothold in Europe,” he added.

Catl global investments follow a direction for more Chinese EV companies, including the BYD auto giant, which moves to Europe amid aggressive competition and price wars in the local market.

Speaking at the World Economic Forum in Tianjin, China, on Thursday, Ni Yun, Catl Senior Manufacturing Officer, said that the brutal opponent’s war will not end without the intervention of Beijing.

He added that if a large player continues to reduce prices, this may lead to the expulsion of other competitors from the market and a monopoly. While Catl’s Jun did not mention any companies, the main Catl competitor byd Discounts in prices have been announced In late May.

Tu LE, the founder and administrative director of Sino Auto Insights, said that the narrow margins and excessive capacity in China were a driving force in Push’s Euro Push in Catl.

But not everything in Europe was easy. Lump Punitive definitions on EVS made in China Last year, after more Campaign is severe In the United States

LE said that the Hungary facility is another major step towards the company’s settlement plans and that it will lead to a decrease in employment costs and a more friendly environment in terms of geopolitical compared to Germany.

Catl also shares in Integrated electric vehicle battery project In Indonesia. According to local media reports, government officials expect production to start in March 2026, which may give Catl a presence in EV market growth Southeast Asia.

Catl said in an interview with him recently Financial times It also plans to launch batteries and recycling to Europe, in a move that may have great repercussions in the regional market. CNBC Catl called for more details.

Modern battering technology, although it is popular in China, has not yet taken off in Europe. The Chinese EV maker and the NIO battery pioneer is one exception. The company provided 60 battery exchanges throughout Germany, the Netherlands, Norway, Sweden and Denmark.

Meanwhile, Jeep and Dodge Maker Stellantis recently partnership with the United States to integrate battery exchange technology with a fleet of 100 Fiat 500 EVS in Madrid, Spain.

It is believed that the experience of using a battery swap station is very similar to the use of automatic car wash. The EV driver gives the car on a platform with an integrated system, which removes the battery exhausted from the bottom of the car and replaces it with a new system charged completely. The entire process takes about five minutes.

Battery shipping advocates say that technology solves a number of problems, especially with regard to rapid charging and long-term performance-two main points for a large scale of EVS.

Analysts say the other main exchange of exchange is that it allows car manufacturers to keep the battery ownership, which reduces the initial price of the car and creates a regular revenue flow for original equipment manufacturers.

However, some defects include high primary infrastructure costs and unification deficiency through auto manufacturers.

Catl, which has a number of partnerships with Chinese original equipment manufacturers, said in a good position to implement the necessary level to unify the products through its customer base, said Connor WhatsApp, a raw material analyst at Consultance Fastmarkts, said that Catl, which has a number of partnerships with Chinese original equipment manufacturers, said in a good position to implement the necessary level to unify the products through its customer base.

“Especially after its last flow of funds from the Hong Kong list, it has the capital needed to develop the infrastructure within the European market,” Watts told CNBC via email.

“One of the companies that can succeed in developing the European battery exchange industry is nothing better than Catl given its position in the market,” he added.

Julia Poliscana, director of vehicle vehicles and electronic supply chains in the campaign of transport and environment in the campaign group, said the main car makers must agree to a unified cell design for the exchange technology of batteries to work widely in Europe.

“Switching the battery is a good addition to the charging space, and in some parts of the market is logical … but it is not a silver bullet to solve our problems,” Policanova told CNBC by phone.

She added: “We will still need batteries and we will need materials for them, whether they are replaced or whether it is permanently in the car.”