Contemporary Amperex Technology Co. Ltd.

Overview Key strengths Key risks Leading market position in the global automotive battery industry. Deterioration in profitability on elevated input cost amid supply disruption. Close relationship with leading automakers that are electrifying their product portfolio. Rising adjusted debt leverage on accelerating capacity expansion. Strong technological know-how on battery product innovation. Contemporary Amperex Technology Co. Ltd. (CATL) should solidify its global leading market position over the next two years. The company is the world's largest lithium-ion automotive battery supplier by shipment volume, with a 35% global market share in the first quarter of 2022 and 50% market share by battery installation in China during the same period. CATL has a good reputation for competitive product offerings and technological innovation. Various global

...Contemporary Amperex Technology Co. Ltd. (CATL) should solidify its global leading market position over the next two years. The company is the world's largest lithium-ion automotive battery supplier by shipment volume, with a 35% global market share in the first quarter of 2022 and 50% market share by battery installation in China during the same period. CATL has a good reputation for competitive product offerings and technological innovation. Various global auto original equipment manufacturers (OEMs) have established long-term relationships with the company to secure sufficient battery supply for their electrification initiatives over the next five to eight years. Market competition may intensify as smaller battery suppliers emerge and auto OEMs accelerate investments in self-owned battery capacities. However, production ramp-up of new players could take years to materialize. CATL's...

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