CATL H1 profit soars 33% as energy storage and overseas expansion get results

Contemporary Amperex Technology Co. Ltd. (CATL) reported robust first-half results for 2025, with net profit climbing 33.3% year-on-year to CNY30.49 billion ($4.2 billion. The company continues to push efforts in energy storage along with global expansion efforts, as domestic competition in electric vehicle batteries remains intense. 

Revenue rose 7.27% to CNY178.89 billion ($24.7 billion), underpinned by nearly 150 GWh in combined battery shipments. The gross margin improved to 25%, up 1.8 percentage points, while operating cash flow reached CNY58.7 billion, with the company providing a mid-year dividend payout of CNY10.07 per 10 shares, totaling CNY4.57 billion. 

EV Batteries Face Margin Pressure 

EV batteries remained CATL’s primary revenue driver, contributing 73.6% of total sales. Segment revenue rose 16.8% to CNY131.57 billion, and global market share hit 38.1% in the first five months of 2025. However, gross margin fell 4.5 percentage points to 22.41%, due to ongoing price competition and raw material fluctuations. 

Despite these headwinds, CATL maintained a high production utilization rate of nearly 90%, reflecting strong demand. Management noted that cost-cutting efforts, including materials innovation and structural optimization, helped preserve unit-level profitability. 

Energy Storage Emerges as Profit Engine 

In contrast, CATL’s energy storage business delivered a more favorable margin profile. Although revenue slipped 1.5% year-on-year to CNY28.4 billion, gross margin increased to 25.52%, aided by scale efficiencies and product upgrades. The company launched its 9 MWh TENER Stack system and led the global market in energy storage battery output in H1 2025, according to battery industry tracker Xinluo. 

Diversification and International Growth 

CATL continued expanding into adjacent sectors. Revenue from battery materials and recycling declined 45% to CNY7.89 billion, while mineral resource sales rose 28% to CNY3.36 billion, with the Yichun lithium project seen as a hedge against upstream volatility. Meanwhile, its battery-swap infrastructure exceeded 400 passenger vehicle stations and 100 heavy truck sites. 

International revenue surged 21% to CNY61.2 billion, accounting for over a third of total sales. Following its Hong Kong listing in May, which raised over HKD 41 billion, CATL allocated roughly 90% of proceeds to its Hungarian plant, due for full operation in 2027. Additional projects in Spain and Indonesia further reflect its vertical integration strategy. 

R&D and Next-Gen Battery Push 

R&D spending grew 17.5% year-on-year, with over 21,000 engineers working on breakthroughs such as solid-state batteries, sodium-ion chemistry, and ultra-fast charging technologies. The company disclosed it had resolved key scientific hurdles for solid-state batteries, aiming for pilot production by 2027 and full commercialization around 2030.