CATL Faces First Revenue Decline, Shares Drop 4%

Shares of CATL, the world’s largest battery maker, fell nearly 4% on Wednesday after the company announced its first annual revenue decline since 2015. In a securities filing, CATL revealed an 8.7%–11.2% revenue drop in 2024, citing adjustments in product prices due to falling raw material costs, including an 86% plunge in lithium carbonate prices since late 2022. Despite increased sales volumes, the revenue dip led to slower profit growth, with net profit rising 11.1%–20.1%, the slowest pace since 2019.

CATL shares dropped 3.8%, marking their largest intraday decline since October, as the ChiNext market in Shenzhen slipped 0.6%. The company had previously intervened in the lithium market by opening a massive hub in Jiangxi in 2022 but ceased production after achieving its goals.

Expanding beyond batteries, CATL launched an EV chassis in December and is strategizing a shift toward power grids and international investments. Major projects include a 100 GWh battery factory in Hungary to supply automakers like Mercedes-Benz and BMW, and a joint battery plant with Stellantis in Spain. At the World Economic Forum, co-chairman Pan Jian hinted at more European joint ventures with automakers.

CATL, holding a 45.1% share of Chinese-made EV batteries in 2024, saw its market dominance grow as competitors BYD and CALB lost share. Reports also indicate CATL is planning a Hong Kong IPO, potentially one of 2025's largest.

These developments underscore CATL's efforts to maintain its global leadership amid fluctuating market dynamics.