China’s largest electric vehicle battery maker CATL will raise wages for a broad group of production workers from January 2026, a rare move that has drawn attention in a manufacturing sector grappling with weak economic growth and rising job insecurity.
The company will increase the monthly base salary of employees at job grades JG1 to JG6 by 150 yuan ($21), according to an internal memo that circulated on Chinese social media and was later confirmed by founder, chairman and chief executive Robin Zeng. The affected grades mainly include assembly line workers, junior technicians and support staff. “The initiative aims to attract and retain talent, enhance operational efficiency and product quality, and strengthen the company’s competitiveness,” CATL said in the memo.
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The battery maker did not specify how many employees would benefit, but its 2024 annual report showed it had 131,988 employees, including 96,725 frontline production workers. In addition to the salary increase, CATL has introduced a bonus programme to encourage staff to work during the 2026 Lunar New Year holiday. Employees meeting attendance requirements between Feb. 9 and Feb. 28, 2026, will receive an additional bonus of at least 3,200 yuan, local media reported. The Lunar New Year holiday next year runs from Feb. 15 to Feb. 23.
CATL’s wage decision stands out as Chinese manufacturers across several industries have cut headcount in recent years following the pandemic slowdown and ongoing global trade frictions. The move quickly trended on Chinese social media, reflecting its unusual nature in the current economic climate.
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The announcement comes as CATL continues to dominate the global EV battery market. Total global EV battery installations reached 933.5 gigawatt-hours (GWh) in the January–October period, up 35.2% from a year earlier, according to South Korean researcher SNE Research. CATL led the market with 355.2 GWh, giving it a 38.1% global share, ahead of BYD with 157.9 GWh, while South Korea’s LG Energy Solution ranked third with 86.5 GWh and a 9.3% share.
CATL is also expanding aggressively overseas. In November, the company began construction of a new lithium iron phosphate (LFP) battery plant in Spain through a 50-50 joint venture with Stellantis, with production scheduled to start by late 2026. The group has also started mass production of its fifth-generation LFP batteries, marking a new milestone in energy density and cycle life, Zeng said at the 2025 World Power Battery Conference in Sichuan.
Source: CNEVPOST