On October 20th, CATL (SZ300750, priced at 181.49 yuan, with a market cap of 798.05 billion yuan), the global leader in power batteries, announced in its investor relations activity record that it has launched the world’s first battery utilizing lithium iron phosphate 4C supercharging. This battery offers ultra-fast charging, long range, and high safety, achieving “10 minutes of charging for 400 kilometers of range.” It will start mass production by the end of this year and will be installed in vehicles in the first quarter of next year.
According to the Securities Times, CATL stated that multiple clients, including Avita and Chery, have expressed intentions to cooperate, and have officially announced that they will be using the supercharged battery. Compared to traditional lithium iron phosphate batteries, the cost of the supercharging battery has not increased much and its price won’t change significantly. The goal is to offer more for the same price, aiming to make it accessible and beneficial for the general public, achieving technological equity, and leading the fast-charging market.
According to CATL’s official WeChat account, on October 16th, Chery Group and CATL jointly announced that the supercharged battery will be used in Chery’s Exeed Starway, deepening the strategic cooperation between the two parties.
As introduced by CATL, it took only two months from the battery’s launch to its debut in a vehicle, truly achieving a fast-paced “quick charging, quick installation, quick mass production” approach. With CATL’s industry-leading manufacturing capabilities, the supercharging battery will start mass production by the end of 2023, and models equipped with this battery will officially hit the market in the next quarter.
The supercharged battery is primarily marketed as a “4C supercharged battery”. At its August launch, CATL stated that the battery’s introduction marked another milestone in the history of power battery technology and would accelerate the overall electrification process.
CATL had previously responded optimistically about the 4C fast-charging technology. They believe that, in the long run, automakers have a strong desire to introduce differentiated products, predicting that the 4C fast-charging technology will occupy a significant market share. However, CATL also pointed out that the scale of application of the 4C fast-charging technology is not solely determined by the battery but is also greatly influenced by automakers’ vehicle planning.
Apart from the eye-catching “10 minutes charging for 400 kilometers” feature, “lithium iron phosphate” is another keyword that has attracted industry attention.
Because the battery’s positive electrode is based on a lithium iron phosphate material system, the 4C supercharging battery will have a significantly reduced cost compared to fast-charging batteries made from ternary materials, giving the battery an advantage beyond performance.
According to The Paper news, CATL stated that from January to August, its global market share remained stable and continued to rank first, benefiting from earlier overseas client orders. Based on SNE data, from January to August 2023, the company’s overseas power battery usage market share reached 27.7%, up 6.9% from the same period last year. Among them, the European market is rapidly breaking through, with CATL’s market share for power batteries reaching 34.9% from January to August, a substantial increase of 8.1% year-on-year. In addition, the company’s power battery market share in regions outside of China, the US, and Europe reached 27.2%, a substantial increase of 9.8% year-on-year, ranking first.
As of September 30, 2023, the company’s inventory amounted to 488.84 billion yuan, essentially flat compared to the previous period, with stock maintained at a relatively low level. Considering that the prices of raw materials and batteries have both dropped, and battery stock levels have increased mainly due to anticipated Q4 demand growth compared to Q3, provisions have been made for Q4.
In terms of production capacity utilization, with the rise in demand, the current capacity utilization has increased to around 70% compared to the first half of the year, ranking high within the industry. The company will plan production capacity construction based on market demand and order planning. Thanks to continuous technological and manufacturing advancements, the company’s production line CAPEX efficiency has been improving, with the investment intensity per GWh gradually decreasing.
In the secondary market, CATL opened lower with fluctuations on October 20th. As of press time, CATL was priced at 181.49 yuan, a decrease of 0.66%, with a market cap of 798.05 billion yuan.