CATL Commands 40% Of Chinese Battery Market This Year

OCT 31 2018 BY MARK KANE 7

CATL already delivered 11.7 GWh in the first three quarters of 2018.

According to news from China, Contemporary Amperex Technology Limited (CATL) – one of the leading lithium-ion battery manufacturer – delivered in the first nine months some 11.7 GWh of battery cells, which is over 40% of the total of 28.87 GWh in China (the remaining part is 17 GWh). This year’s results are better than in 2017, when CATL delivered around 12 GWh in the entire year.

Revenues during the period increased almost 60% to 19.136 billion yuan ($2.75 billion) at net income of 2.379 billion yuan ($342 million) (down 7.5%). It seems that the net margin stands at 12.4%.

When combining the revenues and income with deliveries we can calculate results per kWh, which are very interesting:

  • Average sales price: $235/kWh
  • Average net income: $29/kWh

In June, 2018 CATL raised some $850 million in IPO for about 10% of shares. It was earlier expected that up to $2 billion is possible, and it was reasonable, as the prices quickly more or less doubled and stabilized at twice the level of the IPO (around 70 yuan vs 36.20 yuan). Currently, stock value is at 75 yuan per share.

Source: Gasgoo

Categories: Battery Tech, China


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7 Comments on "CATL Commands 40% Of Chinese Battery Market This Year"

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So it looks like all of China’s battery production is 40 GWh for 2018 (12/(.4.*0.75)). That puts the Gigafactory’s 35 GWh into perspective. I am going to guess this means that Tesla controls about 25-30% of all batteries produced on the planet and channels those into transportation and storage (or does the accounting not include phones, laptops,…).

China is very seasonal. I think CATL did a bit over 2 GWh in Q1 vs. 6+ in Q3. China should do close to 50 GWh for 2018 vs. 13-14 for GF.

These are CATL’s first 3 quarter delivery numbers, that “35 GWh” you claim for GF is future target capacity for the whole year, one is real, the other is a wish.

Actual delivery for GF is 14GWh, not bad, but hardly compariable with China’s 29GWh.

With EV mandate kicking in next year and 30-50% growth rate even before it begins, theres not much point putting China and Tesla/Panasonic in the same sentence

$235/kWh is interesting. How much is EV cells vs. packs vs. LFP storage (similar to Powerpacks)? The latter usually have much higher prices due to higher cycle life — Tesla charges ~$450/kWh. But storage is <4% of Tesla's kWhs.

Buses also need higher cycle life. A 40/40/20 split between $150/kWh car cells, $200/kWh car packs and $450 storage/bus packs is an average of $230/kWh. That's just guesswork, though.

Panasonic/Tesla was around 14 GWh through 9 months vs. 11.7 for CATL. BYD is 3rd, in the 6-8 GWh area. Several other Chinese plus three Korean companies (LG, Samsung, SK) did a few GWh each, but have big plans. China will probably force a bunch of smaller battery makers to merge, but the Koreans are part of separate chaebols so I have no idea what will happen there.

LFP cells are cheaper? Interesting. I thought BYD used LFP for their cars and buses because it was cheaper than NMC?

I would be very careful with average prices per kWh. These are cells, packs, complete solutions, other incomes, etc. etc. Revenues seem to have gone up faster than total sold kWh, which is likely connected to sales of higher end products, not rising cost. In the end we can learn very little about the costs on a cell / module level from CATL from these numbers. Some prices from competitors have been quoted around the 100-150 USD range on a cell level, and CATL is likely not very different considering their growth rate.

Unless CATL is gouging the industry while under goverment protection.