China ' s CATL, the world ' s largest electric motor battery manufacturer, projects a three-fold increase in profits in July-September compared to the same quarter last year, due to the rapid growth in production in response to the growing demand from the electric car market worldwide.
The company is not only the world's largest producer; it accounts for more than one third of the world's supply of traction batteries; in particular, it sells its solutions to known producers such as Tesla.
In the third quarter, its profits are expected to increase to $1.23 to $1.37 billion from $456.27 million in the corresponding quarter of last year, which the company provided at the end of Monday, with net profits expected to double in the first nine months of the current year.
CATL reported that the company had increased its efforts to expand the market in order to increase previously planned deliveries, and that production and sales had increased significantly, which had helped to maintain a leading position in the world market, leading to a rapid increase in profits.
CATL is known to have accelerated expansion to foreign markets by entering into agreements for the supply of traction machines to key car manufacturers, including Mercedes Benz Group and BMW in Europe, as well as Ford Motor Co. in the United States, government subsidies in these regions have stimulated an increase in interest in electric vehicles.
In order to compensate for the increasing cost of raw materials for batteries, CATL has taken special measures, including the establishment of long-term agreements with suppliers; the manufacturer is also working on the processing of used ABMs and using a "dynamic" pricing scheme for car manufacturers.
However, during the current year, CATL's shares fell by more than 30%, but rose by 4% on Tuesday after the announcement of an increase in returns. In general, China's AKB producers are taking the lead in the market. The first place, according to SNE Research, is now traditionally CATL, the second two months in a row is held by Chinese BYD, and the tenth is composed of smaller Chinese producers like CALB.