CATL LFP feedstock supply strategy accelerates amid global EV demand

CATL

The CATL LFP feedstock supply strategy is accelerating as the battery giant locks in long-term cathode materials. By prepaying key partner Shenghua, the CATL LFP feedstock supply strategy aims to stabilise costs and secure volumes. As EV demand rises, the CATL LFP feedstock supply strategy underpins CATL’s dominance in LFP batteries and its next growth phase.

Prepayments deepen CATL LFP feedstock supply chain integration

CATL has agreed significant prepayments to secure LFP from Jiangxi Shenghua, part-owned by Fulin Precision. It will pay 500mn yuan by September and a further Yn1bn in November to support Shenghua’s capacity expansion. However, supply volumes and pricing remain undisclosed, reflecting competitive sensitivity.

The CATL LFP feedstock supply strategy comes on top of earlier support for Shenghua’s new plants. CATL is backing a 160,000 t/yr LFP facility in Yichun and a 200,000 t/yr LFP plant in Sichuan. As a result, Shenghua’s LFP output already jumped from 42,159t in 2023 to 128,240t in 2024, with sales closely tracking that growth.

Meanwhile, CATL signed a Yn6bn deal with major LFP producer Jiangsu Lopal in mid-September. That contract secures 157,500t of LFP for CATL’s overseas factories from 2025 to 2031. Together, these moves show how the CATL LFP feedstock supply strategy combines prepayments, project finance and multi-year offtake to lock in LFP at scale.

CATL LFP feedstock supply supports EV battery expansion and sodium-ion push

CATL is coupling its LFP security with downstream partnerships and technology upgrades. The firm signed a cooperation agreement with EV maker Li-Auto on safety and ultra-fast charging. Li-Auto has already produced more than 1mn vehicles using CATL battery technology, cementing a deep platform relationship.

Battery installations underline the strength of CATL’s position. The company installed 190.9GWh of power batteries in January-June, up 38pc year on year. Therefore, the CATL LFP feedstock supply strategy is not just about risk management. It is also about sustaining leadership as competitors chase similar EV opportunities.

At the same time, CATL is preparing its next technology step with the Naxin sodium-ion battery. Mass shipments are targeted for 2027, with an energy density of 175Wh/kg. The company says this performance can cover over 40pc of domestic passenger vehicle demand. Sodium-ion will not replace LFP, but combined with a robust CATL LFP feedstock supply base, it gives CATL a wider toolkit across price and performance segments.

The Metalnomist Commentary

CATL is turning LFP procurement into a strategic weapon, using prepayments and capex support to secure future capacity. Its parallel push into sodium-ion suggests a portfolio approach to cathode chemistry rather than a single-bet strategy. For rivals and automakers alike, CATL’s LFP deals with Shenghua and Lopal are a clear signal that upstream security is now central to battery competitiveness.

Lopal LFP supply deal with CATL underpins global battery expansion

Lopal

The Lopal LFP supply deal with CATL marks a major step in China’s global battery materials strategy. Under the agreement, Jiangsu Lopal will supply 157,500t of LFP cathode material to CATL’s overseas plants from 2025 to 2031. As a result, the Lopal LFP supply deal with CATL secures long term CAM supply for CATL’s international gigafactories and EV customers.

Global significance of the Lopal LFP supply deal with CATL

The Lopal LFP supply deal with CATL is valued at more than 6bn yuan, highlighting its strategic weight. The contract will feed CATL’s overseas battery factories, supporting EV and energy storage growth outside China. Therefore, CATL locks in a predictable stream of LFP CAM while scaling its non Chinese manufacturing footprint.

LFP is gaining share in global batteries because it offers lower cost and strong safety performance. However, reliable cathode supply remains crucial as more OEMs shift from nickel rich chemistries. The Lopal LFP supply deal with CATL supports this trend by linking a leading LFP producer to the world’s largest cell maker.

Lopal has grown rapidly since acquiring BTR’s LFP business in 2021. Its output reached 184,697t in 2024, up 56pc year on year. Meanwhile, LFP sales rose 65pc to 178,287t, confirming strong downstream demand. This growth gives CATL confidence in Lopal’s ability to deliver under a long dated contract.

Lopal’s internationalisation push and new LFP capacity

The CATL agreement sits at the centre of Lopal’s internationalisation strategy. Lopal already holds term contracts with Cornex, Ford and LG Energy Solution. Therefore, the company is building a diversified global customer base across Chinese and foreign cell makers and OEMs.

Lopal’s production network spans several Chinese provinces, supporting scale and logistics flexibility. Major bases operate in Jiangsu, Shandong, Tianjin, Sichuan and Hubei. This footprint helps balance regional feedstock, power and permitting conditions. It also spreads risk as domestic competition in LFP intensifies.

Internationally, Lopal is building new capacity in Indonesia to support regional demand and localisation policies. The company has completed a 30,000 t/yr LFP phase there and is constructing a 90,000 t/yr second phase. It aims to finish this expansion by the end of 2025, creating a 120,000 t/yr Indonesian hub. This timing aligns with the ramp up of CATL and other Asian players across Southeast Asia.

The Lopal LFP supply deal with CATL will likely leverage both Chinese and Indonesian output over time. As a result, Lopal can optimise feedstock sourcing, shipping routes and tariff exposure. This flexibility matters as trade rules and battery content regulations evolve in the US, Europe and key emerging markets.

The Metalnomist Commentary

This deal underscores how LFP chemistry and Chinese CAM producers are locking in long term roles in global EV supply chains. By pairing fast growing Indonesian capacity with deep Chinese experience, Lopal becomes a more systemically important supplier to CATL and other majors. Market participants should watch how pricing formulas, regional sourcing splits and future offtake deals evolve, as these will shape LFP cost curves outside China.

CATL battery bond issuance to fund global capacity expansion

CATL Battery

CATL battery bond issuance plans are moving into focus. CATL said it will raise up to 10bn yuan, or $1.4bn. Therefore, CATL battery bond issuance will support construction and working capital.

The company did not name specific projects. However, the funding aligns with its accelerating capacity buildout. As a result, CATL battery bond issuance supports both near-term liquidity and long-cycle investments.

China buildout targets multi-site gigafactory scale

CATL is expanding its domestic footprint across multiple provinces. It is building a 100GWh per year plant in Jining. Meanwhile, it is developing a 40GWh per year project in Dongying.

The company is also pushing scale in Xiamen with an 80GWh per year project. Therefore, CATL battery projects in China keep absorbing capital and execution capacity. This pipeline also tightens competition for equipment and upstream materials.

Overseas plants deepen CATL’s supply chain footprint

CATL continues to localise production outside China. It started building an LFP battery plant in Aragon on 26 November. Meanwhile, it already operates a 14GWh per year plant in Germany.

CATL is building a 100GWh per year plant in Hungary that should start in early 2026. It also expects a 15GWh per year plant in Indonesia to begin production in 2027. As a result, CATL global battery capacity is shifting closer to end markets.

The Metalnomist Commentary

Bond funding often signals confidence in sustained battery demand. However, margin pressure can rise if capacity expands faster than EV uptake. Therefore, project selection and customer contracts will decide the payoff from CATL’s bond move.

China LFP Supply Deal Between Wanrun and CATL Secures 1.32 Million Tonnes

Wanrun

China LFP supply deal reached historic proportions as Hubei Wanrun New Energy Technology signed a five-year agreement to deliver 1.32 million tonnes of lithium-iron-phosphate cathode materials to CATL. The massive China LFP supply contract from May 2025 through May 2030 represents one of the largest battery materials procurement agreements in the industry, highlighting CATL's aggressive expansion strategy and LFP technology's growing market dominance.

Strategic Partnership Drives Battery Technology Innovation

China LFP supply partnership extends beyond simple procurement to encompass joint research and development initiatives. Wanrun and CATL agreed to collaborate on high-density LFP product iteration and mass production capabilities while jointly exploring new energy market opportunities. CATL committed to purchasing at least 80% of promised monthly quantities, providing Wanrun with guaranteed revenue streams and production planning certainty.

Meanwhile, Wanrun demonstrated strong operational performance with 2024 LFP production reaching 233,108 tonnes, representing 51% growth from 2023. Sales volumes increased 39% to 228,240 tonnes during the same period, reflecting robust market demand and the company's expanding manufacturing capabilities. This performance trajectory supports the substantial supply commitments made to CATL.

CATL's Market Leadership Drives Demand Growth

However, CATL's explosive growth trajectory necessitates secured raw material supplies for sustained market expansion. The battery giant sold 120 GWh of batteries in Q1 2025, marking 30% year-over-year growth and reinforcing its position as China's largest battery producer. CATL raised $4.6 billion through Hong Kong Stock Exchange share sales on May 20th, specifically targeting global battery market expansion financing.

Therefore, the Wanrun supply agreement aligns perfectly with CATL's international growth strategy and capital deployment plans. The five-year commitment provides production stability while supporting CATL's aggressive capacity expansion across multiple global markets. This strategic partnership model demonstrates how Chinese battery companies integrate vertically to secure critical material supplies.

LFP Technology Gains Global Market Share

Furthermore, lithium-iron-phosphate batteries captured nearly half of the global electric vehicle battery market in 2024 according to the International Energy Agency. LFP technology offers significant advantages including lower manufacturing costs and enhanced safety performance compared to ternary battery alternatives. These benefits drive increasing adoption across automotive manufacturers seeking cost-effective energy storage solutions.

As a result, the Wanrun-CATL partnership positions both companies advantageously within the rapidly expanding LFP segment. China's dominance in LFP production creates competitive advantages for domestic battery manufacturers while supporting the country's electric vehicle industry leadership. The supply agreement reinforces China's integrated approach to battery supply chain control from raw materials through finished products.

The Metalnomist Commentary

The Wanrun-CATL supply agreement exemplifies China's systematic approach to battery supply chain integration, securing critical materials access while driving technology innovation through strategic partnerships. This 1.32 million tonne commitment reflects both companies' confidence in LFP technology's long-term market prospects and China's continued dominance in global battery manufacturing despite increasing international competition.

China Sinopec CATL Investment Accelerates EV Battery Exchange Network Expansion

Sinopec CATL

China Sinopec CATL investment emerged as the state-controlled oil refiner became the largest cornerstone investor in the battery producer's record-breaking Hong Kong IPO. The strategic China Sinopec CATL investment supports the companies' ambitious plan to build 10,000 electric vehicle battery exchange stations nationwide, marking a significant shift for the traditional energy company toward new energy infrastructure as China's EV market continues rapid expansion.

Record IPO Success Validates Strategic Partnership Value

China Sinopec CATL investment positioned the oil refiner as the largest cornerstone investor in CATL's $4.6 billion Hong Kong IPO that became the world's largest listing in 2025. CATL shares surged over 16% in their Hong Kong trading debut on May 20th, closing at HK$306.2 compared to the IPO price of HK$263 per share. The successful market reception demonstrates strong investor confidence in the partnership strategy and China's EV infrastructure development plans.

Meanwhile, the two companies reached an initial agreement in April to build more than 500 EV battery exchange stations nationwide in 2025, with a long-term target of 10,000 stations. This ambitious infrastructure rollout leverages Sinopec's existing network of 30,000 integrated energy charging stations serving 300 million users, including approximately 10,000 EV charging and battery exchange stations already operational across China.

Strategic Project Targets Heavy Vehicle Transportation

However, Sinopec and CATL finalized a specific agreement on May 21st for the Qiji Exchange Station project focused on heavy trucks in Fujian province. The project will serve critical road freight transportation along the coastal route between the Yangtze River Delta and Pearl River Delta using CATL's latest battery exchange system technology. This heavy vehicle focus addresses a key market segment where battery exchange offers significant advantages over traditional charging methods.

Therefore, the heavy truck application demonstrates practical implementation of battery exchange technology for commercial vehicles requiring rapid turnaround times. The coastal corridor route represents one of China's most important freight transportation arteries, making successful deployment here a potential template for nationwide expansion. The project showcases how traditional energy companies can integrate new energy technologies into existing transportation infrastructure.

Traditional Energy Companies Embrace New Energy Transition

Furthermore, Sinopec's investment reflects broader trends among conventional energy companies accelerating investments in new energy markets. State-run energy firm PetroChina launched a "supercharger station" in Shanghai's Yili road area in March, demonstrating industry-wide recognition of EV infrastructure opportunities. These companies leverage existing real estate assets and customer relationships to enter growing new energy segments.

As a result, joint ventures between traditional energy companies and EV technology providers create synergistic opportunities for rapid infrastructure deployment. PetroChina, SAIC, Sinopec, and CATL established the Shanghai JieNeng Zhidui New Energy Technology joint venture in September 2022 to lease EV battery packs and develop battery exchange technology. CATL's construction of a 40 GWh annual capacity factory in Dongying, China's largest oil refining city, further strengthens these traditional energy sector connections.

The Metalnomist Commentary

Sinopec's cornerstone investment in CATL's record-breaking IPO exemplifies how China's traditional energy giants are strategically positioning themselves within the electric vehicle ecosystem, leveraging their existing infrastructure assets to capture new revenue streams in battery exchange services. The partnership's focus on heavy vehicle applications addresses a critical market need where battery exchange technology offers compelling advantages over conventional charging, potentially accelerating commercial EV adoption across China's logistics sectors.

CATL Battery Sales Surge 30pc in Q1 2025 on Global Energy Storage Demand

CATL Battery

Energy Storage and European Growth Propel CATL Battery Sales

CATL battery sales reached 120 GWh in Q1 2025, marking a 30pc increase from the same period last year. The company attributed the surge to expanding demand in energy storage markets in the Middle East and Australia.

Roughly 20pc of Q1 sales supported energy storage projects, highlighting CATL’s strategic diversification beyond electric vehicles. The firm also noted that its production capacity remains fully utilized, driven by global demand momentum.

CATL Strengthens Position in Europe, Navigates US Tariffs

CATL’s European battery market share climbed to 38pc in 2024, up from 17pc in 2021.

Its German plant turned profitable, reinforcing CATL’s foothold in the region amid favorable regulatory and demand conditions.

Meanwhile, US market exposure remains limited, and CATL has implemented contingency plans to counteract trade policy risks. The company is also negotiating with customers to mitigate the effects of tariff uncertainty on business continuity.

Financials Reflect Strong Q1 Momentum

CATL posted a net income of 14bn yuan ($1.92bn) for Q1 2025, up 33pc year-on-year, bolstered by geographic and sectoral diversification. This performance underscores CATL’s operational agility in a fragmented and politically sensitive global battery market.

The Metalnomist Commentary

CATL’s Q1 growth underscores its success in diversifying across regions and energy applications. Its resilience in the face of tariff pressures signals strong strategic planning and global supply chain positioning.

CATL Shandong Battery Plant Launches First Phase of Production

CATL

China’s leading battery manufacturer CATL has launched the first phase of its new Shandong battery plant, marking a major step in regional capacity expansion. The plant, located in Jining city, is CATL’s first battery production complex in north China and the largest to date in the region. With a capacity of 60GWh per year for power and energy storage batteries, the CATL Shandong battery plant reinforces the company’s strategy to meet surging global demand for EV and grid-scale storage systems.

New Capacity Supports TWh Ambitions and Market Dominance

The second and third phases of the Shandong facility are scheduled to be commissioned in 2024 and 2025, though capacity details remain undisclosed. Meanwhile, CATL is also constructing a 40GWh/year plant in Dongying, China’s largest oil refining hub. These developments support CATL’s plan to add 219GWh of new capacity globally. As a result, the company’s total production is forecast to reach between 700GWh and 1,000GWh by 2025, potentially making CATL the first TWh-scale battery manufacturer in the world, according to market analysts.

Soaring Battery Demand Drives Upstream Lithium Demand

According to IEA data, global demand for EV and energy storage batteries approached 1TWh in 2024. This growth continues to drive upstream consumption of lithium carbonate, as each GWh of lithium iron phosphate (LFP) battery production requires roughly 600 tonnes of lithium carbonate equivalent. As the CATL Shandong battery plant and others ramp up production, the lithium supply chain will face additional pressure, reinforcing the strategic importance of vertical integration and raw material security across the battery industry.

The Metalnomist Commentary

CATL’s aggressive expansion in Shandong underscores its intent to dominate both EV and grid-scale storage markets. As TWh-level production nears, supply chain resilience—particularly in lithium—will determine the company’s long-term cost advantage and market leadership.

CATL Expands Battery Sales in 2024 Despite Revenue Dip

CATL

Strong EV and energy storage demand lifts GWh shipments; global capacity poised for TWh milestone in 2025

China’s top battery producer Contemporary Amperex Technology (CATL) recorded a 22% increase in battery sales in 2024, fueled by growing demand in electric vehicle and energy storage markets. The firm shipped 475GWh of lithium-ion batteries, up from 390GWh in 2023.

Growth in both EV and energy storage sectors

CATL’s 2024 shipments included 381GWh of power batteries, rising 19% year-over-year, and 93GWh of energy storage batteries, jumping 35%. These gains came amid a 27% rise in global EV-related battery consumption and a 63% surge in energy storage battery demand, according to company-cited data.

CATL’s total production capacity hit 676GWh last year, with an operational utilization rate of 76.3%. The company is constructing an additional 219GWh of capacity across sites in China, Europe, and Indonesia. Market analysts project CATL’s total capacity will reach 700–1,000GWh in 2025, potentially making it the first company to achieve TWh-scale battery output.

Global footprint and customer base widen

With 13 operating production bases, CATL is also expanding its joint ventures, including partnerships with Stellantis in North America and a vertically integrated project in Indonesia. It leads China’s battery market alongside BYD and CALB, which accounted for 25% and 7% of China’s power battery installations, respectively, compared to CATL’s 45%.

CATL supplies major auto manufacturers including BMW, Volkswagen, Toyota, Hyundai, and Chinese EV startups like NIO and Li Auto. Its energy storage clients include major global and Chinese power firms such as NextEra, Wartsila, State Power Investment Group, and PetroChina.

Despite higher volumes, CATL’s total revenue fell 9.7% to 362 billion yuan ($50 billion) in 2024. However, net profit rose 15% to 50.7 billion yuan, reflecting operational efficiency and high-margin product segments.

CATL Secures LFP Supply from Shenghua to Boost Battery Production

LFP

CATL Signs Strategic LFP Supply Agreement

China’s largest battery manufacturer, CATL, has entered into a major supply agreement with Jiangxi Shenghua New Material to secure long-term lithium iron phosphate (LFP) cathode materials. The deal involves a 500mn yuan ($69.6mn) advance payment to help finance Shenghua’s construction of two new LFP production facilities. These will include a 160,000 t/yr plant in Yichun, Jiangxi, and a 200,000 t/yr plant in Sichuan, significantly expanding the company’s capacity.

Priority Supply for CATL Through 2029

Under the agreement, Shenghua will prioritize all designed capacity to meet CATL’s specifications between 2025 and 2029. CATL has committed to purchasing at least 80% of Shenghua’s annual production during this period. Shenghua’s LFP output has surged from 42,159t in 2023 to 128,240t in 2024, with sales climbing at a similar pace. The company currently supplies major battery producers such as CATL, Svolt Energy Technology, and Henan Lithium Power Battery Technology.

Strengthening China’s EV and Energy Storage Market

LFP batteries accounted for nearly half of the global EV battery market in 2024, with an even greater share in China due to their cost advantages and safety profile. As geopolitical tensions and US tariffs limit export opportunities, Chinese manufacturers are intensifying efforts to stimulate domestic demand through new energy vehicle (NEV) and energy storage system (ESS) expansion. This strategic partnership positions CATL to maintain secure material supply and enhance competitiveness in both sectors.

The Metalnomist Commentary

This deal underscores the strategic importance of upstream material control in the rapidly growing EV and ESS sectors. By locking in long-term LFP supply, CATL is mitigating raw material risk while supporting China’s domestic manufacturing resilience. In a market facing geopolitical pressure, vertical integration remains a key competitive advantage.

CATL Begins Construction of 25 GWh/yr Battery Plant in Fujian

CATL

China’s largest battery manufacturer, CATL (Contemporary Amperex Technology Co., Ltd.), has started building its No. 5 plant at the Fuding battery production complex in Fujian province. The plant, with an annual production capacity of 25 GWh, is part of CATL’s strategy to expand its dominance in the global new energy power battery market.

Key Details of the Project

• Investment: 6.47 billion yuan ($910 million).
• Timeline: Construction is set to finish by June 2025, with production commencing shortly afterward.
• Fuding Complex: CATL’s largest single battery production site, with a total capacity of 120 GWh/yr, has already completed four plants.

A 1 GWh lithium-iron-phosphate (LFP) battery typically requires 2,300 tons of lithium carbonate feedstock, underscoring the significant demand for lithium resources that the plant will generate.

CATL’s Global Production Leadership

• Current Output: CATL produced 211 GWh of batteries from January to June 2024, accounting for 65% of its total capacity of 323 GWh/yr.
• Growth: This represents a 37% increase from 154 GWh during the same period last year.
• Global Footprint: CATL operates 13 production bases worldwide, solidifying its leadership in the energy storage and electric vehicle battery sectors.

Concerns About Potential Oversupply

China’s power battery production has led global growth over the past decade, driven by surging demand from the new energy vehicle (NEV) market. However, rapid capacity expansions have raised concerns about potential oversupply, which could pressure margins and disrupt market dynamics, according to industry participants.

Strategic Importance

CATL’s latest expansion in Fujian aligns with its mission to support the fast-growing NEV market while staying ahead of competitors. The additional capacity will play a critical role in meeting the global shift toward renewable energy and electric mobility.

CATL Rio Tinto Partnership Targets Mining Electrification and Battery Circularity

CATL

CATL Rio Tinto partnership plans could accelerate electrification across Rio Tinto’s global mining operations as the metals sector looks for practical ways to cut emissions. The two companies have signed a non-binding agreement to explore cooperation in battery technologies, system integration, recycling, and new energy solutions.

The CATL Rio Tinto partnership connects one of the world’s largest battery producers with a major global supplier of iron ore, copper, aluminium, and lithium. This creates a direct link between upstream resource extraction and the battery systems needed to decarbonise mining fleets, rail, and industrial energy use.

Rio Tinto wants to develop a zero-carbon mining model with global demonstration value. CATL will support that goal through its battery technology, energy system expertise, and experience in large-scale electrification.

Battery Systems Move Deeper Into Mining Operations

Mining electrification is becoming a strategic priority because diesel-powered equipment remains a major source of operating emissions. Battery systems can support electric haul trucks, heavy equipment, rail locomotives, site power systems, and charging infrastructure.

The collaboration could help Rio Tinto improve operating efficiency while reducing carbon intensity. Electrified mining systems may also lower fuel exposure, improve maintenance economics, and support customers that increasingly demand lower-carbon raw materials.

The agreement also reflects a broader shift in mining procurement. Large miners are no longer only buying equipment; they are building partnerships around batteries, energy management, recycling, and circular material flows. This gives battery companies a larger role in mining’s industrial transition.

Critical Minerals Circularity Becomes a Strategic Link

The CATL Rio Tinto partnership will also explore business models for battery materials recycling and critical minerals circularity. This is important because mining electrification will create new demand for lithium, copper, nickel, graphite, rare earths, and other battery-linked materials.

Circularity can help reduce waste and strengthen supply security. If battery materials can be recovered and reused across mining operations, companies can reduce dependence on fresh raw material inputs and build more resilient supply chains.

CATL and BYD are increasingly targeting partnerships with major miners and energy companies. CATL and BYD have already signed agreements with BHP to develop battery solutions for mining equipment and railway locomotives, while BYD has also agreed to work with Aramco on electric and fuel cell vehicle technologies.

The Metalnomist Commentary

Mining electrification is becoming a new battleground for battery companies, miners, and equipment suppliers. The strategic winners will be those that can connect mineral supply, battery deployment, recycling, and low-carbon operations into one industrial ecosystem.

CATL to Build Lithium Battery Plant in China's Oil Hub Dongying

CATL

New 40GWh facility aligns with China’s decarbonisation and vehicle electrification goals

China’s leading battery manufacturer, CATL, has announced plans to build a lithium-ion battery plant in Dongying, Shandong province, marking a strategic move to transform China’s largest oil refining city into a zero-carbon hub. The new factory will have a production capacity of 40GWh per year in its initial phase.

CATL signed the agreement with Dongying’s municipal government this week. While the timeline for construction and commissioning remains undisclosed, the company said additional capacity could be developed in a second phase, depending on market conditions.

Supporting Local Electrification and Zero-Carbon Goals

CATL will also participate in Dongying’s public transport electrification, providing charging infrastructure and battery exchange systems. The company aims to supply batteries for passenger cars, freight vehicles, trucks, buses, and ships, making Dongying a demonstration city for zero-carbon mobility.

This initiative aligns with China’s broader decarbonisation strategy, with Dongying’s transformation representing a symbolic shift from oil to clean energy.

CATL Eyes Global Expansion Amid Soaring Battery Demand

CATL’s battery sales rose 22% in 2024, reaching 475GWh, fueled by growing demand in the EV and energy storage sectors. The company operates 13 battery bases worldwide and is adding 219GWh of new capacity across China, Germany, Hungary, and Spain.

By 2025, CATL aims to reach 700–1,000GWh in total capacity, making it the first TWh-level battery manufacturer globally.

China’s NEV sales have surged, reaching 40.9% of total auto sales in 2024. According to the China Association of Automobile Manufacturers, NEV sales may hit 16 million units in 2025 — nearly half the total market.

China’s CATL Launches Luoyang Battery Factory

China’s leading battery manufacturer, Contemporary Amperex Technology (CATL), has commenced operations at the first phase of its new production facility in Luoyang, Henan province. The facility, boasting a production capacity of 30GWh per year, will manufacture CATL’s advanced 255 Wh/kg Qilin battery, which enables electric vehicles to travel over 1,000km on a single charge. This factory marks CATL's 13th in China.

The project’s total investment is projected to be up to 14 billion yuan ($1.93 billion). While specific details regarding the second phase remain undisclosed, the initial phase’s launch underscores CATL's significant growth. The company installed 93.3GWh of batteries in the first half of this year, making up 46% of China's total battery output. Additionally, CATL’s international battery installations increased by 16% year-on-year to 27.7GWh from January to April. By the end of the decade, CATL aims to establish two of Europe’s largest gigafactories in Hungary and Germany.

CATL BHP mining electrification accelerates heavy equipment and rail decarbonization

BHP mining

CATL BHP mining electrification advances with a new strategic collaboration. The non-binding pact targets batteries for haul trucks and locomotives. CATL BHP mining electrification also covers fast-charging, energy storage, and recycling. The partners aim to build a repeatable model for low-carbon mining.

Scope, technology, and capacity roadmap

The collaboration focuses on electrifying mining fleets and rail while installing fast-charge networks. CATL BHP mining electrification benefits from CATL’s projected 700–1,000 GWh capacity in 2025. CATL expands globally and builds a 40 GWh plant in Dongying. Therefore, supply depth supports prototypes, pilots, and scaled deployments.

Market drivers and North American relevance

Demand for critical minerals and storage is rising with renewables and AI data centers. China’s new-energy truck sales hit about 72,000 in January–June 2025. As a result, battery heavy-duty platforms are maturing quickly. Meanwhile, BHP targets net-zero operational emissions by 2050, reinforcing adoption timelines.

The Metalnomist Commentary

This tie-up links OEM battery scale with miner operating know-how. Success hinges on duty-cycle validation, pit-side charging buildout, and grid access. Watch TCO versus diesel, battery lifecycles, and recycling value recovery.

CATL and Sinopec to Build EV Battery Exchange Stations Across China

Sinopec

EV Battery Exchange Stations Target Range Anxiety

China’s CATL and Sinopec will build over 500 EV battery exchange stations nationwide in 2024 to ease range anxiety. The long-term goal is to deploy 10,000 stations, transforming battery swapping into a mainstream charging alternative for electric vehicle (EV) users. This move supports China’s commitment to green transport and expanding electric mobility infrastructure.

Strategic Collaboration Enhances Technology and Reach

CATL brings battery technology and R&D strength, while Sinopec contributes vast infrastructure through its nationwide network of gas stations. The companies will jointly manage station construction and operation, leveraging scale and logistics efficiency. CATL’s battery-swapping system is already compatible with over 30 EV models, including those by Changan, Aion, Foton, and Sinotruck.

China's NEV Market Continues Rapid Expansion

NEV production surged by 52% year-on-year to 1.903 million units in the first two months of 2025, CAAM data shows. Sales mirrored production, with 1.835 million NEVs sold—a strong signal of consumer confidence and supportive policy. CPCA projects 2025 NEV sales will exceed 15.65 million units, up 28% from 2024, sustaining China’s global lead in electric mobility.

The Metalnomist Commentary

The CATL–Sinopec alliance marks a pivotal shift in China's EV ecosystem. Battery-swapping offers a fast, scalable solution to charging delays. By aligning infrastructure with battery tech, China could set a global standard for EV convenience—especially for fleet operators and logistics.

CATL Jianxiawo Lithium Mine Suspension Lifts Prices and Tightens Supply

Jianxiawo Lithium Mine

The CATL Jianxiawo lithium mine suspension signals near-term tightness in China’s lepidolite supply. The CATL Jianxiawo lithium mine suspension stems from an expired license now pending renewal. As a result, the CATL Jianxiawo lithium mine suspension has jolted futures and focused attention on regulatory risk.

Why this mine pause matters

CATL halted Jianxiawo after its mining license expired on 9 August. The company is seeking renewal and expects operations to resume. Jianxiawo can produce 60,000 t/yr LCE concentrate across two lines. That equals about 6% of China’s 2024 lepidolite capacity. Any prolonged outage would tighten feedstock for domestic converters.

Market reaction and policy backdrop

Lithium carbonate futures hit their daily limit-up after the news. November contracts jumped 8% to 81,000 yuan per tonne. Meanwhile, Yichun authorities requested reserve verification from eight lepidolite miners. This step could disrupt output at non-compliant sites. Therefore, traders now price higher short-term supply risk.

Supply chain implications extend beyond futures screens. Cathode and battery producers face timing and cost uncertainty. However, diversified brine and spodumene flows may cap longer-term impacts. Contract buyers will watch renewal timelines and regional inspections closely.

Downstream demand remains uneven but improving. EV and storage orders are stabilizing after earlier slowdowns. As a result, modest demand firming meets a tighter lepidolite pipeline. This mix supports prices into contract negotiations for the fourth quarter.

The Metalnomist Commentary

Regulation, not geology, is today’s swing factor in China’s lithium supply. Watch the license renewal pace and Yichun verifications; delays could extend the risk premium on carbonate through year-end.

CATL and APM Terminals Partner to Accelerate Electrification of Container Terminals

APM Terminals

Strategic Alliance Targets Zero-Emission Port Operations

China’s Contemporary Amperex Technology (CATL) and Netherlands-based APM Terminals have signed a landmark agreement to drive the electrification of container terminal operations. The partnership aims to accelerate the global shift toward battery-electric container handling equipment through the Zero Emission Port Alliance.

Under the agreement, CATL will supply advanced batteries and integrated energy systems for APM Terminals’ electric fleet, including terminal tractors. This collaboration spans the full battery lifecycle, covering design, deployment, after-sales service, and recycling, ensuring a sustainable and circular approach to energy use in ports.

APM Terminals, an independent division of Danish shipping group AP Moller–Maersk, operates in more than 60 countries and is developing several new facilities. Together with Maersk, the company has committed to achieving net-zero emissions by 2040, integrating renewable power sources such as solar and wind into port operations.

Driving Efficiency and Sustainability in Global Trade

The electrification initiative also focuses on operational efficiency, with plans to reduce dwell times, optimize energy use, and deploy energy-saving infrastructure. By transitioning to battery-electric handling equipment, APM Terminals can significantly cut its carbon footprint while enhancing operational reliability and lowering long-term energy costs.

As the maritime logistics industry faces increasing regulatory and environmental pressures, this partnership positions both companies at the forefront of port decarbonization. The integration of CATL’s battery technology with APM Terminals’ global operations could serve as a scalable model for ports worldwide seeking to achieve zero-emission targets.

The Metalnomist Commentary

The CATL–APM Terminals partnership signals a pivotal shift toward zero-emission port infrastructure. By combining battery innovation with operational expertise, the initiative could redefine industry standards for sustainable maritime logistics. The success of this collaboration may influence other port operators to accelerate similar decarbonization strategies.

CATL and DHL Partner to Advance Sustainable Logistics Solutions

CATL

Strategic Collaboration to Enhance Energy Efficiency in Logistics

Chinese battery giant CATL and German logistics leader DHL Group have announced a strategic partnership to develop sustainable logistics solutions worldwide. Under the agreement, CATL will supply DHL logistics parks with liquid cooling energy storage systems (ESS) and energy management platforms, aiming to optimize energy efficiency.

Innovative Energy Storage and Battery Recycling Initiatives

CATL’s ESS technology includes battery swapping and ultra-fast charging systems, ensuring faster energy replenishment and enhanced operational efficiency for DHL’s logistics infrastructure. This partnership will support DHL’s commitment to carbon reduction and clean energy adoption.

Additionally, CATL has designated DHL as its preferred logistics provider, focusing on battery recycling innovations and advancing electric vehicle (EV) supply chain solutions.

China's Shenghua Begins Production at Yichun LFP Plant

Shenghua New Material

Jiangxi Shenghua New Material, a leading Chinese manufacturer of lithium-iron-phosphate (LFP), has initiated production at its new LFP facility in Yichun city, located in southeastern China’s Jiangxi province. The facility is being constructed in two phases, with each phase contributing 75,000 tonnes per year of LFP production capacity. The first phase, representing an investment of 1.5 billion yuan ($214 million), includes six production lines. The trial run of the first line has already started, and full production is expected to begin by mid-October. All six production lines are scheduled to be operational by the end of 2024.

Partnership with CATL Strengthens LFP Output

Shenghua has partnered with CATL, China’s largest power battery manufacturer, to build the plant and supply its products. CATL has made an advance payment to support the plant’s construction, and in return, Shenghua has committed to supplying CATL with at least 140,000 tonnes of LFP annually from 2025 to 2027.

Shenghua’s output has rapidly expanded, producing 47,000 tonnes of LFP in the first half of 2024, more than tripling from 15,102 tonnes during the same period in 2023. For the entire year of 2023, Shenghua produced 42,159 tonnes of LFP, with a production capacity of 140,000 tonnes per year. The company supplies LFP to major clients such as CATL, Svolt Energy Technology, and Henan Lithium Power Battery Technology.

LFP batteries continue to dominate China's energy storage market. In August, LFP batteries accounted for 75% of production and 74% of installed battery volumes, according to data from the China Automotive Battery Innovation Alliance.

CATL Battery Facility Fire: Minimal Market Impact So Far

CATL Battery

On September 29, a fire broke out at one of China's largest battery producers, CATL's, facilities in Ningde city, Fujian province. Local authorities reported that the fire was quickly contained, with no injuries recorded. The facility, which started operations in September 2020, is a key production site for CATL, but the company has reassured that the incident has caused only minimal disruption to its operations.

According to market participants, the fire has not yet affected the lithium market, a key material in battery production. CATL, responsible for 65% of China's battery output, produced 211GWh of batteries in the first half of 2024, a 37% increase compared to the previous year. The company has 13 production sites worldwide and remains a dominant force in the global new energy vehicle (NEV) and power battery industries.

Although this incident doesn't seem to have immediate market consequences, it brings to light ongoing concerns about battery safety, particularly regarding ternary batteries used in electric vehicles. These issues could impact consumer confidence in the growing NEV market in the long term.