Chinese EV battery giant CATL reports sharp slowdown in profit growth

According to its latest financial results, Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle (EV) battery maker, reported a significant slowdown in profit growth in the third quarter of 2021. CATL's net profit for the quarter was 4.4 billion yuan ($695 million), up 173% year-on-year, but this represented a significant deceleration from the 808% increase in profit seen in the second quarter. The company attributed the slower growth to higher raw material costs and increased competition in the industry. Despite this, CATL's revenue for the quarter rose by 170% to 27.2 billion yuan ($4.3 billion), driven by strong demand for EV batteries. The company's market share in EV batteries continued to grow, reaching 30.4% in the third quarter, up from 29.9% in the second quarter. CATL's results come as the global EV market continues to grow rapidly, with forecasts predicting that EV sales will reach 10 million units by 2025 and 30 million units by 2030. This is expected to drive further demand for EV batteries, which could benefit CATL and other players in the industry as they seek to capitalize on this growing trend.