CATL Predicts Energy Storage Will Be 50% of Sales by 2030

Contemporary Amperex Technology Co. Ltd. expects energy storage systems to represent 50% of its global sales by 2030, rising from about 25% at present, the company said at a Shanghai energy conference. Electric-vehicle batteries currently make up roughly three-quarters of CATL’s revenue.

Kevin Tang, director of energy storage systems for Europe at CATL, reported that the energy storage segment has grown rapidly over the past five years, when it accounted for about 2% of the company’s battery sales. The shift reflects rising demand for systems that store power from wind and solar and supply it when generation is low.

Tang identified China and the United States as CATL’s largest energy storage markets, with Europe third. Customers in Europe are investing in projects that pair batteries with renewable plants and in grid-side installations intended to reduce congestion on local networks.

CATL has expanded manufacturing in Europe with plants in Germany and Hungary and has begun building a factory in Spain through a joint venture with automaker Stellantis. The company also announced a 3 billion yuan investment in an energy storage testing centre to simulate power grids and investigate causes of storage-related fires and explosions.

Profitability for large-scale storage projects remains a concern, Tang noted, and developers continue to weigh project economics when planning installations. He also pointed to higher raw-material prices as a near-term pressure on manufacturers and observed, “Prices of lithium, copper and aluminium have increased after recent Middle East conflict.” CATL said it is monitoring supply-chain developments closely.

To secure inputs, the company operates lithium mining activities in southern China and runs a large battery recycling plant intended to recover materials for reuse in battery production. Those activities aim to strengthen control over key materials as demand for batteries expands beyond electric vehicles.

Founded in 2011, CATL began by supplying lithium-ion cells for electric cars and has grown into the world’s largest battery maker. While EV batteries still dominate its sales mix, the company expects the share from energy storage to rise to half of global sales by 2030.