Contemporary Amperex Technology reported a 33 percent profit increase for the first quarter of this year and said that the impact of the US government's so-called reciprocal tariffs on the world's largest manufacturer of electric vehicle batteries would be minimal due to the market only making a small part of its business.
Net profit was CNY14 billion (USD1.9 billion) in the three months ended March 31, the Ningde-based firm announced in a financial report released yesterday. Revenue rose 6.2 percent to CNY84.7 billion from a year earlier, while the gross profit margin was 24.4 percent, it added.
The US accounts for a small proportion of CATL's shipments, the company said at an earnings conference call, adding that it has proactively made plans in response to changing global conditions since last year, so the impact of new tariffs on its performance is minimal. The firm is actively negotiating solutions with its clients, it pointed out.
The production capacity of CATL was fully utilized last quarter, with strong production and sales since the beginning of this year and expected sustained high growth in the future, the company noted. Emerging regions, including the Middle East and Australia, are experiencing rapid growth in energy storage, it added regarding the development of the relevant overseas markets.
Energy storage demand, driven by renewable energy and artificial intelligence data centers, is strong and requires higher standards for such batteries, CATL pointed out. The company has secured several large energy storage projects in the Middle East, Australia, and other markets, it added.
Global demand is overall strong, with CATL's production capacity operating at a relatively high saturation level, according to the company.
CATL's global EV battery market share topped 38 percent in the first two months of this year, according to figures released by South Korean market research firm SNE Research. The figure in Europe jumped to 43 percent from 35 percent a year earlier, leading its closest competitor by 13 percentage points.
CATL has been making strides in the US since 2018, establishing a sales and service center in Detroit. In addition, it opted to partner with auto giant Ford Motor by licensing its lithium iron phosphate battery technology rather than pursuing direct equity investments in local manufacturing plants.
Ford is building a USD3.5 billion battery factory in Michigan, the first in the US with licensed LFP technology from CATL. Tesla also continues to incorporate CATL batteries in its Shanghai-made EVs, which are exported to North America and Europe.
There is a possibility of "rush installations" for certain energy storage projects in the United States until the middle of this year, according to a report by Sealand Securities released last month.
Shares of CATL [SHE: 300750] rose 1.9 percent to CNY228.22 (USD31.33) each as of 2.55 p.m. in Shenzhen today, after earlier rising by as much as 2.7 percent.
