China’s largest electric vehicle (EV) battery producer, CATL, is setting its sights on a new frontier: green energy power grids. The company, a key supplier to Tesla, plans to develop and manage zero-carbon grids tailored for industries such as mining, urban infrastructure, and data centers.
CATL founder Robin Zeng emphasized the immense potential of this market, suggesting it could be “ten times larger” than the demand for EV batteries. The firm currently commands 37% of the global EV battery market, positioning it as a dominant force in the industry. This expansion marks a significant strategic shift as CATL aims to leverage its advanced battery expertise to power broader energy systems.
The move mirrors a similar path taken by Tesla, whose energy division has proven highly profitable. In the third quarter of 2024, Tesla Energy reported a record 30.5% gross margin, reflecting the growing value of renewable energy integration. CATL’s pivot into green grids signals its intent to capitalize on this trend, addressing the rising demand for sustainable power solutions while diversifying its revenue streams.
