Contemporary Amperex Technology Co Ltd (CATL), China’s largest electric vehicle (EV) battery manufacturer, posted a 34% increase in second-quarter net profit, showing resilience despite intensifying competition and margin pressures in the domestic market.
The company reported a net profit of 16.5 billion yuan ($2.30 billion) for the quarter, compared with a 32.9% rise in the previous quarter. Revenue for the same period grew 8.3% year-on-year to 94.2 billion yuan, improving from a 6.2% increase in the first quarter. For the first half of 2025, CATL recorded a 33% profit gain and a 7.3% rise in revenue.
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Amid a protracted price war in China’s auto market, CATL’s gross profit margin in its core power battery segment declined to 22.41% from 23.48% a year earlier. However, the company’s battery materials and recycling segment recorded a margin of 26.42%, more than triple its level from the same period last year. This helped lift CATL’s overall gross margin by 1.57 percentage points during the first half.
CATL retained its position as the global leader in EV battery usage, with a market share of 38.1% in the first five months of 2025, up from 37.5% a year earlier, according to SNE Research. BYD ranked second with a 17.4% share, followed by LG Energy Solution with 10%.
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Looking beyond its domestic market, CATL has continued to ramp up its international presence. The company completed a listing in Hong Kong in May, with the proceeds earmarked for a new battery manufacturing facility in Hungary. Additionally, its lithium-ion battery joint venture in Indonesia is scheduled to begin operations by the end of 2026.
CATL is also broadening its business focus, launching an EV chassis with integrated battery technology late last year and investing in a robotaxi venture in June. These initiatives reflect its strategy to explore emerging technologies and mobility services while consolidating its leadership in the global battery market.