China’s largest battery maker now derives 25% of sales from storage, up from 2% five years ago, amid lithium price volatility.
Contemporary Amperex Technology Co. Ltd. (CATL) is accelerating its pivot from electric vehicle batteries to energy storage systems. The shift follows surging demand driven by the artificial intelligence sector and persistent lithium price fluctuations.
Five years ago, storage accounted for just 2% of CATL’s sales. Today, the segment represents 25% of revenue, reflecting rapid growth in grid-scale and industrial applications. The company’s expansion aligns with global efforts to stabilize renewable energy supply.
CATL’s move underscores its bet on sodium-ion batteries as a lower-cost alternative to lithium, addressing supply chain risks and cost pressures in the EV market.