Modern Amperex technology co GmbH (CATL), a battery supplier of Tesla Inc TSLA and Nio Inc NEVERhas estimated its net income for the July-September quarter to nearly triple year-on-year, supported by significant expansion of productionreported Reuters.
What happened: The world’s largest battery maker, which accounts for more than a third of global electric vehicle sales, expects net profit to rise to 8.8 billion yuan ($1.23 billion) to 9.9 billion yuan in the third quarter, up from 3.3 billion yuan last year. according to that report, which referred to a stock exchange filing. The company expects net income for the first nine months of 2022 to more than double compared to the same period last year.
CATL shares are trading nearly 6% higher in mainland China at the time of writing.
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The company also announced that it has increased its market expansion efforts in addition to previously planned capacities. “Production and sales have increased significantly, which has helped secure its continued leadership position in the global market and resulted in rapid profit growth,” it said. CATL is reportedly planning to establish manufacturing facilities in the United States and is in the final stages of evaluating sites.
Growth forecast: CATL’s earnings estimates and production expansion plans are an indication of how optimistic battery makers are about their growth prospects.
Corresponding Markets and Market Research Private Ltd. The global EV battery market is expected to grow at a CAGR of 19% from US$56.4 billion in 2022 to US$134.6 billion in 2027.
Continue reading: Nio, CATL’s third-largest customer after Tesla, is reducing its reliance on the battery giant to achieve diversification
