Despite stock stress, CATL likely to retain EV battery dominance in China, analysts say

CATL’s tech edge and brand safeguard its EV battery lead, though carmakers are seeking alternative suppliers

Contemporary Amperex Technology Limited’s (CATL) dominance in the Chinese electric vehicle (EV) market is unlikely to slump over the coming year given its brand recognition and edge in technology, analysts said, though its shares have already tumbled amid the battle with profit-squeezed EV makers.

Chinese carmakers have been doubling down on efforts in recent weeks to reduce their reliance on CATL – in September, Xiaomi and Li Auto highlighted their partnership with tier-two battery manufacturers, including CALB Group, while Xpeng planned to make in-house battery packs this year.

Amid concerns about a potential loss of market share, CATL’s Shenzhen-listed shares have lost 25 per cent since mid-August and 36 per cent from their all-time high seen in early May. On Monday morning, the equities of the Fujian-based firm fell by a further 0.8 per cent in Shenzhen and 1.3 per cent in Hong Kong.