CATL Shares Surge to Three-Year High Amid Strong Sales Outlook

Shares of **Contemporary Amperex Technology Co. Ltd. (CATL)**, a leading Chinese battery manufacturer, rose sharply to their highest level in three years, driven by a positive sales forecast from a key supplier. The company’s shares, listed in Shenzhen, increased by as much as **14%**, reaching levels not seen since August 2022.

The surge in CATL’s stock coincided with comments from **Wuxi Lead Intelligent Equipment Co.**, a prominent supplier of manufacturing equipment for battery production. Wuxi Lead announced expectations for significant capacity expansion among its key clients, leading to a **20%** increase in its own share price. Analysts from **Morgan Stanley**, led by **Sheng Zhong**, noted that Wuxi Lead’s management is currently negotiating orders for **2026** and early **2027**, anticipating an expansion cycle comparable to previous upswings in the industry.

The optimistic outlook from Wuxi Lead is seen as a strong indicator for the battery sector, potentially signaling a new wave of investment in battery production. Other Chinese battery manufacturers also experienced gains, with shares of **Gotion High-Tech Co.** and **Eve Energy Co.** rising in response to the positive sentiment surrounding CATL.

CATL has maintained a dominant position in the global battery market, currently holding a **37.9%** market share in the first half of **2023**, according to **SNE Research**. This places the company well ahead of its nearest competitor, **BYD Co.**, which holds a **17.8%** share. CATL has also been gaining market share from significant rivals based in South Korea and Japan.

In a remarkable feat, CATL reported a record profit in the second quarter of this year, despite challenging global demand for electric vehicles (EVs). The company’s growth trajectory is further supported by a successful share sale in Hong Kong aimed at financing its expansion plans.

Beyond its domestic operations, CATL is expanding internationally with wholly-owned production facilities established in **Germany** and **Hungary**. The company is also developing a joint venture with **Stellantis NV** in **Spain**, indicating its commitment to enhancing its global footprint.

Analyst **Kelvin Lau** from **Daiwa Capital Markets Hong Kong Ltd.** mentioned that Wuxi Lead is likely informed of CATL’s expansion strategies and highlighted progress in the development of solid-state battery technology. CATL has set a target for small-scale production of solid-state batteries by **2027**, which could further solidify its position in the battery market.

With these developments, CATL continues to play a crucial role in the evolving landscape of battery manufacturing, reflecting a robust demand for energy solutions worldwide.