Chinese EV battery giant CATL posts jump in profits
Beijing (AFP) July 26, 2024 -
The world's leading maker of electric vehicle batteries, China's CATL, on Friday reported a 13.4 percent jump in second quarter profits despite a battery price war weighing on sales.Founded in 2011 in the eastern coastal Chinese city of Ningde, CATL produces more than a third of the electric vehicle batteries sold worldwide.
They are used in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.
In the April-June quarter, CATL's net profit rose 13.4 percent year-on-year to 12.35 billion yuan ($1.7 billion), according to a calculation based on a statement CATL released on the Shenzhen Stock Exchange.
A drop in the cost of raw materials used to make batteries has triggered a price war among players in the sector.
During the same period, CATL's sales fell by 13.2 percent year-on-year, to 87 billion yuan.
CATL is building its second European factory in Hungary after launching its first one in Germany in January 2023.
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