CATL has ranked first globally in terms of battery deliveries for energy storage since 2021 with more than 40% of the global market share, according to its annual report. It counts among its major clients state-owned power companies such as Huaneng as well as top energy storage system manufacturers including Sungrow Power Supply (300274.SZ).
Energy storage batteries accounted for 17.6% of CATL's total battery sales volume, up from 12.5% in 2021. CATL will also supply battery cells and packs to Tesla's (TSLA.O) export-oriented Megapack storage plant in Shanghai, which will start production in early 2025 with plans to export, according to a person familiar with the matter.
China's lithium battery exports have experienced explosive growth this year, driven by the pull of overseas demand, according to a report by CCTV Finance on Aug 23. As per the latest data from the General Administration of Customs, the export value of lithium battery products in China increased 58.9 percent in the first seven months of this year.
By comparison, BYD's EV battery shipments totalled 135 GWh last year. Smaller players EVE, REPT, and HITHIUM also saw more than 100% growth in their energy storage battery sales last year, with 11%, 8%, and 7% of the 185 GWh global market, respectively.
The fund’s goal is “to build supply chains outside of China even with all the geopolitical barriers”, said another person involved with the fund. US lawmakers including Republican Senator Marco Rubio alleged last year that the battery maker was close to the Chinese leadership.
It has been growing rapidly by specialising in cheaper lithium iron phosphate (LFP) batteries. The person briefed on the fund’s mandate said potential investments could include mining. CATL is already a large shareholder in Chinese miner CMOC.