CATL (Contemporary Amperex Technology Co., Ltd.) Business Report FY ended Dec. 2018

Financial Overview

(in million CNY)
FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Factors
Sales 29,611.27 19,996.86

-With the rapid development of the new energy automobile industry, market demand for power batteries is growing in China.

Operating profit 4,168.48 4,832.02
Ordinary income 4,204.81 4,848.10
Net income 3,735.90 4,194.06


New Company

-The Company announced that it has signed an official contract with China FAW Co., Ltd. (FAW) to establish a joint venture that specializes in power battery production and sales. The joint venture will construct a plant in the Economic Development Zone in Ningde City. No more than CNY 4.4 billion will be invested in the plant, with 51% shares held by CATL, and 49% held by FAW. It was registered on January 31 and has a business scope that includes development, production, sales, after-sales and technical consultant services for lithium-ion batteries, power batteries, ultra-large capacity batteries, and battery systems. (From a press release on April 25, 2019)

-On July 19, 2018, the Company announced a plan to sign two joint venture agreements with GAC. The two companies are going to invest jointly in setting up two companies tentatively named Amperex GAC Power Battery Co., Ltd., and GAC Amperex Power Battery System Co., Ltd. The former is going to provide lithium-ion batteries, power batteries, ultra-large-capacity energy storage batteries and battery system solutions.  Its registered capital is Chinese yuan (CNY) 1 billion. CATL is going to have a 51% stake in the new company, investing CNY 510 million while GAC is to own a 49% by spending CNY 490 million. The latter is going to provide technical services relating to power battery systems and relating solutions. Its registered capital is CNY 100 million as CATL is going to have a 49% stake in the new company, investing CNY 49 million while GAC is to own a 51% by spending CNY 51 million. (From a press release on July 19, 2018)


New Plant

-On December 23, GAC Amperex Power Battery System Co., Ltd. (GAC Amperex, a joint venture funded by GAC Group and CATL) and Amperex GAC Power Battery System Co., Ltd. (Amperex GAC) started construction of their facilities in GAC’s smart NEV industrial park in Guangzhou. GAC Amperex has invested CNY 300 million in phase 1 of this plant construction project which is expected to operate at the end of 2019. The plant will specialize in the production and supply of battery packs. Amperex GAC’s plant has a total investment amount of CNY 4.226 billion and will be fully operationable by the end of 2020. (From GAC press release)


Come into Operation

-On July 4, 2018, Dongfeng Amperex (Wuhan) Battery System Co., Ltd. was officially put into operation in Dongfeng New Energy Automobile Industrial Park. It is estimated that Dongfeng Amperex will achieve annual production capacity of 192,000 sets, with output of 9.6GWh and output value of 11.4 billion yuan. Capitalized at 100 million yuan, Dongfeng Amperex was established by Dongfeng Electric Vehicle Co., Ltd. and Contemporary Amperex Technology Co., Ltd. Each party was funded 50 million yuan and held 50% shares. (From a press release on July 6, 2018)


Strategic Cooperation

-On February 25, CATL announced that it has signed a mid to long term strategic cooperation agreement (2019-2023) with Beijing New Energy Vehicle Co., Ltd. (BJEV) and Pride-Power. The partners will collaborate on NEV battery pack procurement cost limits, pricing and new power battery packs for the next five years. (From a CATL press release)

-On July 17, 2018, the Company signed a strategic alliance agreement with BMW Brilliance Automotive Limited. According to the contract, BMW Brilliance will acquire a battery capacity construction project from CATL for Chinese yuan (CNY) 815 million and have its designated company to produce and supply certain types of power batteries for the long-term procurement program. Also under the agreed conditions, BMW Brilliance has a right to own a stake in CATL for a maximum of CNY 2.85 billion. As for the long-term supply of the batteries, BMW Brilliance is to make an advanced payment of CNY 2.85 billion and discuss the details separately. (From a press release on July 18, 2018)

-The Company and BYTON signed a strategic alliance basic agreement on April 25, 2018. According to the contract, CALT is going to supply power solutions to the first mass production sports utility vehicle (SUV) models of BYTON. In the future, the two parties will actively explore the opportunity to deepen the alliances in the field of automotive battery technology. On the same day, CALT also signed a strategic alliance basic agreement with Jaguar Land Rover. The two companies are going to work together in the area of automotive battery technology and develop automotive drive battery technology. (From a corporate announcement on April 26, 2018)



-The Company signed an investment agreement with the government of Thuringia, Germany, on July 9, 2018. Under the contract, CATL is going to invest EUR 240 million in building a new battery plant and a technical center in Erfurt, Thuringia. The new plant is going to work on research, development, and production of lithium-ion batteries. It will be built in two construction phases. The company plans to launch the production at the new plant in 2021, have an annual production capacity of 14GWh by 2022, and create 600 new jobs. The products are to be supplied to BMW, VW, Daimler, JLR, and PSA. CATL received a notice from BMW that they will need batteries of EUR 4 billion in 2021 and 2022. However, BMW did not mention the quantity of the batteries they are going to buy from CATL. (From a press release on July 10, 2018)

-The Company announced that it would introduce all-new NCM811 high energy density EV batteries with a low cobalt content for the first time in the industry. These batteries are expected to be mounted on the VW Neo and the BMW i3. CATL already has contracts with many German automakers for the supply of the batteries in a large quantity. BMW has agreed to procure more than EUR 1 billion of cells from CATL and has also proposed them to build a new battery factory in Erfurt, Germany. CATL currently has a plan to start producing batteries in Erfurt in 2022. This new plant is expected to reach agreements with VW and Daimler for the supply of batteries for the VW I.D. Series models and the Benz EQ as well. Also, PSA and Renault-Nissan alliance may procure the batteries from the Erfurt Plant. (From a release on August 16, 2018)


R&D Expenditure

(in million CNY)
FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
R&D expenditure 1,991.00 1,602.92 1,080.99
Ratio of total income (%) 6.72 8.02 7.27



-As of December 31, 2018, the Company and its subsidiaries have 1,618 domestic patents and 38 overseas patents in total. Moreover, the Company is applying for 2,110 domestic and overseas patents. (From the Company's 2018 annual report)

-The Company's five core technologies are developed as follows:

  • Super fast charge
  • Ultra high energy density
  • Super long life
  • Ultra high reliability
  • Super environmental adapation

-At present, the company has made four leaps and bounds in the research and development fields of power batteries, such as "long life, high energy density, super fast charge and high safety". In the cycle life of power batteries, it can reach more than 10,000 times; In terms of energy density, the energy density of lithium iron phosphate battery pack system has been increased to more than 130Wh/KG; 5.2C super fast charge products can achieve 12 minutes to complete the charge.


Investment in China

-The Company announced a plan to expand its lithium-ion battery production base, investing CNY 4.62 billion at the maximum. The construction will take place in the city of Ningde in Fujian at a site of 570,000 square meters. The construction work is expected to require 36 months. (From a press release on April 25, 2019)


List on the Shenzhen Stock Exchange (SSE)

-On Apr. 4, 2018, The China Securities Regulatory Commission (CSRC) approved the IPO application of CATL.  CATL has a plan to list on the Shenzhen Stock Exchange (SSE).
-Investment projects

Investment project name Details

Huxi automotive lithium-ion battery production site

Products : Cells, modules and packs of lithium traction battery
Investment amount:9.86 billion CNY
Construction period : 3 years
Production lines:24
Annual production capacity:24GWh Lithium-ion traction battery products
Lithium-ion battery R&D project

Investment amount:4,200 million CNY
Construction period : 3 years
R&D directions:Lithium traction batteries of passenger cars and commercial vehicles, energy storage systems and next generation batteries.


Investment outside China

-The Company announced a plan to expand production capacity at its battery plant in Germany. In July 2018, the company signed an investment agreement with the government of Thuringia, a German state, regarding investment of EUR 240 million in setting up a new battery plant and intelligent manufacturing technology research and development center in the city of Erfurt. The new plant will be constructed in two phases at a site of 82 hectares. Upon completion, it develops and produces lithium-ion batteries and launch the production in 2021, creating 600 new jobs. Initially, CATL aimed to produce 14GWHh at this plant in 2022. However, this time, the company decided to raise the target to 100GWh in 2026 to become the largest battery plant in the world. (From media reports on February 18, 2019)