CATL R&D Investment Reaches 15 Billion Yuan: In-Depth Analysis of Its Technology Barrier Construction Strategy

Contemporary Amperex Technology Co., Limited (CATL, 300750.SZ), as a global leader in power batteries, currently has a market capitalization of approximately 1.65 trillion yuan and a stock price of 374.43 US dollars [0]. According to the latest data, the company achieved a net profit of 49 billion yuan in the first three quarters, a year-on-year increase of 36%, and a global market share of 36.8% [1]. Behind this market position lies the company’s high-intensity R&D investment strategy that has been sustained for many years.

From the perspective of R&D investment scale, CATL has reached an annual R&D investment level of

, which is a global leader in the power battery industry [0]. Through large-scale R&D investment, the company is building a multi-layered technology barrier system to ensure it maintains technological leadership in the fierce market competition.

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CATL has accumulated a large number of core patents in the power battery field, forming a strong intellectual property moat. The company has independent intellectual property rights in core links such as cathode materials, anode materials, separators, and electrolytes, especially in:

• Cell Design Technology
  : Integrated technologies such as CTP (Cell to Pack) and CTC (Cell to Chassis)
• Material System
  : Diversified technology routes such as lithium iron phosphate, ternary high nickel, and solid-state batteries
• Manufacturing Process
  : Key processes such as pole piece manufacturing, cell assembly, formation, and capacity grading

These patent layouts effectively prevent competitors from quickly catching up, forming the first layer of technology barriers.

CATL has one of the largest R&D teams in the industry, with the number of R&D personnel continuing to grow. The company attracts top talent through a competitive compensation system, and from January 1, 2026, it will uniformly increase the basic salary of employees at levels 1-6 by 150 yuan [1], showing great emphasis on talent development.

The company’s R&D team has deep accumulation in the following areas:

R&D Field	Technical Advantage	Applied Products
Material R&D	High-nickel cathode, silicon-carbon anode	High energy density cells
Cell Design	Large cells, long lifespan	Energy storage, power batteries
System Integration	CTP/CTC technology	Vehicle battery packs

Power battery manufacturing involves complex processes, including:

• Pole Piece Manufacturing
  : Precision control of processes such as coating, rolling, and slitting
• Cell Assembly
  : Key processes such as winding/stacking, liquid injection, and sealing
• Formation and Capacity Grading
  : First charge-discharge activation and capacity screening

Through years of accumulation, CATL has formed a large amount of process know-how, which is implicit knowledge that is difficult to replicate quickly, forming an important manufacturing barrier.

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Through continuous R&D investment, CATL’s cell energy density has been continuously improved:

• Lithium Iron Phosphate Batteries
  : System energy density is close to 200 Wh/kg
• Ternary Lithium Batteries
  : Mass-produced cell energy density exceeds 300 Wh/kg
• Next-Generation Technologies
  : Forward-looking layouts such as solid-state batteries and sodium-ion batteries

Technological progress brought by R&D investment has effectively reduced unit costs:

• Material System Optimization
  : Reduce the usage of scarce materials
• Improved Manufacturing Efficiency
  : Increased automation rate of production lines
• Release of Scale Effects
  : Significant R&D amortization effect

CATL conducts industrial investment layout through Puquan Capital (CATL Capital), and recently led an angel round financing of over 100 million yuan for Xinuo Future, a dexterous hand enterprise [2][3], showing that the company is extending into emerging fields such as robotics and energy storage, further expanding the coverage of its technology barriers.

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Facing the catch-up of competitors such as BYD, LG Energy Solution, and Panasonic, CATL maintains technological leadership through high-intensity R&D investment:

• Technological Generation Gap
  : Maintains a 1-2 generation technological leadership advantage
• Cost Advantage
  : Dual cost reduction from scale effects and technological progress
• Customer Binding
  : In-depth cooperation with international automakers such as Tesla, Volkswagen, and BMW

Barrier Type	Current Strength	Sustainability Assessment
Patent Barrier	Strong	Requires continuous innovation to maintain
Talent Barrier	Relatively Strong	Compensation competitiveness is crucial
Manufacturing Barrier	Strong	Deep accumulation of process know-how
Scale Barrier	Strong	Scale effect of R&D investment

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1. R&D Investment Intensity
   : CATL’s 15 billion yuan-level R&D investment is leading in the industry, providing a solid foundation for technology barrier construction [0].

2. Technological Leadership Advantage
   : Continuous R&D investment is being transformed into product competitiveness, and the company maintains leadership in energy density and cost control.

3. Diversified Layout
   : Through industrial investment and forward-looking technology layout (such as solid-state batteries, sodium-ion batteries, and robotic dexterous hands), the company is building a broader competitive moat [2][3].

4. Talent Strategy
   : The salary increase initiative shows the company’s emphasis on talent retention, which is crucial for maintaining technology barriers [1].

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Through its 15 billion yuan-level R&D investment, CATL is building a multi-layered technology moat system including patent barriers, talent barriers, manufacturing barriers, and ecological barriers. This strategy not only consolidates the company’s global leading position in the power battery field but also provides technical support for its expansion into emerging fields such as energy storage and robotics. For investors, CATL’s high-intensity R&D investment strategy is one of the key factors supporting its long-term competitiveness.

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[0] Jinling API Data - CATL Company Overview and Financial Data

[1] NetEase News - “Giants Raise Salaries Together! BYD, CATL, ByteDance Take Action” (https://www.163.com/dy/article/KHKIC3NA051181RS.html)

[2] Investment Circle - “Xinuo Future Completes Over 100 Million Yuan Angel Round Financing, CATL and Xiaomi Participate” (https://news.pedaily.cn/202512/559152.shtml)

[3] iyiou.com - “Dexterous Hand Enterprise Xinuo Future Completes Over 100 Million Yuan Angel Round Financing, Co-invested by CATL and Xiaomi!” (https://www.iyiou.com/news/202512261118134)