Confirmed upturn announced by Catl
In a significant development for the global battery industry, Contemporary Amperex Technology Co. Limited (CATL) has announced plans to start mass production of sodium-ion batteries in 2026. This move is expected to further strengthen CATL's market leadership, which has already been bolstered by its innovative Shenxing Pro technology.
The Shenxing Pro technology, unveiled at the IAA Mobility in Munich, promises a revolutionary leap in safety. It delivers constant high voltage with consistent performance, ensuring no fire or smoke even after thermal runaway. This advancement could potentially reshape the battery industry, offering a safer and more reliable alternative to traditional lithium-ion batteries.
CATL's shares have been on a steady rise, with the stock reaching its highest level since May 2021 in Hong Kong. The stock surged up to 14% on September 15, following an upgrade by JPMorgan to 'overweight.' The latest CATL numbers suggest strong earnings prospects, particularly in its energy storage division.
The European electric vehicle market is growing rapidly, with the penetration rate increasing from 23 to 26 percent in the first half of 2025. Major European automakers like BMW, Stellantis, and Volkswagen are already using CATL's technology, indicating a strong demand for its products in the region.
In response to this growing demand, CATL is set to begin production at its factory in Debrecen, Hungary, by the end of 2025 or the beginning of 2026. The plant is expected to create 9,000 jobs and boast an annual capacity of 100 gigawatt-hours.
The policy support for large-scale energy storage projects in China is providing additional tailwind for CATL. This, coupled with the revolutionary Shenxing Pro technology and the impending mass production of sodium-ion batteries, positions CATL well for continued growth in the global battery market.
However, a new CATL analysis from September 17 provides no clear guidance on whether investors should sell immediately or invest in CATL. The analysis suggests that urgent action may be needed for CATL shareholders, but no definitive advice is given.
As of now, CATL is trading at 354.70 CNY on the Shenzhen Stock Exchange. With the promise of revolutionary safety, mass production of sodium-ion batteries, and strong earnings prospects, CATL continues to be a company to watch in the global battery industry.
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