CATL also said that it accounts for more than a third of global EV battery sales, which contributes to its revenue.
Meanwhile, the battery supplier to Tesla expects third-quarter net profit to increase between 8.8 billion yuan to 9.9 billion yuan, up from 3.3 billion yuan compared to the same period last year.
“The company has stepped up efforts in market expansion, in addition to the previously planned capacity,” said CATL.
“Production and sales increased significantly, which helped secure a continued leading position in the global market and resulted in rapid profit growth.”
On the other hand, CATL has accelerated its expansion into overseas markets by entering into contracts to supply batteries to major automakers, such as Mercedes Benz and BMW in Europe and Ford Motor in the United States.
In August, the EV battery maker announced that it would build a $7.6 billion battery factory in Hungary, making it Europe’s largest manufacturing hub.
To offset rising costs of battery materials, CATL has taken steps including signing long-term contracts with suppliers, recycling materials and negotiating dynamic battery pricing schemes with automakers.