TLDRs;
Contents
- CATL shares jumped 14% to their highest level since 2022 after a key supplier forecasted expansion by major clients.
- Supplier optimism lifted the broader battery sector, with Wuxi Lead surging 20% and rivals Gotion High-Tech and Eve Energy gaining.
- Lithium supply challenges remain, as CATL temporarily halted production at a key mine amid regulatory uncertainty and market oversupply.
- Global expansion and innovation plans, including solid-state batteries by 2027, strengthen CATL’s long-term growth outlook despite short-term risks.
Shares of Contemporary Amperex Technology Co., Limited (CATL), the world’s largest electric vehicle (EV) battery maker, soared as much as 14% on August 29.
The rally pushed the stock to its highest level since August 2022, signaling renewed investor optimism in the company’s long-term growth prospects.
The surge was triggered by comments from Wuxi Lead Intelligent Equipment, a key supplier to CATL, which announced that it expects major clients to expand production capacity over the next two years. The news reinforced confidence that demand for EV batteries will remain robust, despite recent volatility in the global lithium market.
Supplier optimism drives battery sector rally
Wuxi Lead’s shares also benefited from the upbeat forecast, climbing 20% after revealing that it is in active talks for supply orders stretching into 2026 and 2027.
This ripple effect extended across the broader Chinese battery sector, where companies such as Gotion High-Tech and Eve Energy also saw their stock prices strengthen.
CATL, which already commands a dominant 37.9% share of the global battery market, far ahead of rival BYD at 17.8%, according to SNE Research, appears well-positioned to capture further growth. Investors took the supplier’s comments as a strong signal that the industry leader’s order books remain healthy and that long-term demand is intact.
Benchmark Minerals:
"How have CATL’s revenue streams evolved?
🔸EV battery sales grew from $2.5B in 2017 to $5.7B in 2020
🔸BESS surged, making up 13% of revenue by 2022
🔸Growth slowed significantly in 2023, with total sales growing just 16%"#alwaysbecharging pic.twitter.com/TkovlPRYMZ— Felix Hamer • electricfelix (@electricfelix) August 27, 2025
Balancing expansion with raw material challenges
While CATL’s stock is enjoying bullish momentum, the company has also faced hurdles in securing raw materials. Earlier this month, CATL temporarily halted production at the Jianxiawo lithium mine in Jiangxi province for three months. The mine, which accounts for roughly 3% of global lithium supply, was suspended amid regulatory scrutiny and permit renewal delays.
The shutdown underscores the delicate balance between expansion and supply chain risks. Lithium markets have been notoriously volatile, with prices crashing more than 90% from their 2022 peak despite EV demand rising sharply. This oversupply, driven largely by Chinese producers stockpiling material, has pressured miners to pause operations to stabilize the market.
For CATL, the mine suspension highlights how regulatory oversight and concentrated supply chains create vulnerabilities. Yet, the company’s ability to secure financing, maintain market dominance, and expand globally suggests it remains resilient in navigating these challenges.
Global expansion and innovation roadmap
CATL’s growth story extends far beyond China. The company operates in Germany and Hungary, while also building a joint venture in Spain with Stellantis. Recently, it completed a large share sale in Hong Kong to raise funds for further expansion.
Looking ahead, CATL has set its sights on solid-state batteries, a technology seen as the next frontier in energy storage. The company aims to begin small-scale production of these advanced batteries by 2027. If successful, the move could significantly extend EV range and reduce charging times, strengthening CATL’s competitive edge.
For now, the company’s record Q2 profit and dominant global position have investors betting that CATL will remain the central player in the EV battery race. With suppliers signaling more growth on the horizon, CATL’s latest rally reflects growing market confidence in both its near-term performance and long-term strategy.
