Bulletin: Contemporary Amperex Technology Set To Ride Electrification Trend

HONG KONG (S&P Global Ratings) April 29, 2021--S&P Global Ratings today said that China-based Contemporary Amperex Technology Co. Ltd. (CATL; BBB+/Stable/--) will further solidify its domestic market position amid a growing electrification trend. We anticipate the battery supplier for electric vehicles will maintain its net cash position over the next two years, as healthy operating cash inflow largely covers rising capital expenditure. In our view, CATL's competitiveness will strengthen over the next two to five years, given the company's dominant position in China. The Chinese government's goal to become carbon neutral by 2060 should spur the domestic new energy vehicle (NEV) market. We expect the market to grow 40%-50% annually in 2021-2022 and reach a penetration rate of 20% by

...April 29, 2021 HONG KONG (S&P Global Ratings) April 29, 2021--S&P Global Ratings today said that China-based Contemporary Amperex Technology Co. Ltd. (CATL; ###+/Stable/--) will further solidify its domestic market position amid a growing electrification trend. We anticipate the battery supplier for electric vehicles will maintain its net cash position over the next two years, as healthy operating cash inflow largely covers rising capital expenditure. In our view, CATL's competitiveness will strengthen over the next two to five years, given the company's dominant position in China. The Chinese government's goal to become carbon neutral by 2060 should spur the domestic new energy vehicle (NEV) market. We expect the market to grow 40%-50% annually in 2021-2022 and reach a penetration rate of 20% by 2025, from 5% in 2020. Auto original equipment manufacturers are currently leveraging on CATL's production capacities for sufficient NEV batteries to boost their product portfolios. As such, CATL's...

Bulletin