Analysis of CATL's Energy Storage Business Development Prospects: 587Ah Cell Technology Breakthrough and Market Opportunities

Based on the latest data and market information I have obtained, here is a detailed analysis of the development prospects of CATL’s energy storage business:

CATL maintains a leading global position in the energy storage sector, ranking first in global energy storage battery shipments for four consecutive years, with a market share of up to 40% in 2024 and over 2000 cumulative application projects [1][2]. This market position provides a solid scale foundation and brand endorsement for the company’s energy storage business.

According to the latest data, CATL’s 587Ah large-capacity energy storage cells have achieved a major breakthrough [3]:

• Completed 2GWh shipments, becoming the first to achieve GWh-level shipments
• Full-year shipment volume is expected to reach 3GWh in 2025
• Has officially entered the large-scale commercial stage

CATL’s energy storage cells have undergone technological iterations from 280Ah, 314Ah to 587Ah. After three years of R&D and testing, the 587Ah cell has the following technical features:

• Initial energy conversion efficiency reaches 96.5%
• Advantages of long lifespan and low kWh cost
• Safety failure rate reaches PPB level (one in a billion)

Based on self-developed super line technology, CATL’s Jining base has achieved significant cost control:

• The system’s daily production capacity supports over 220,000 587Ah large-capacity cells
• Maximum production rate of over 120 lines per minute
• Average production of one cell in less than 2 seconds
• Production cost reduced by 42%

Currently, the energy storage business accounts for approximately 20% of CATL’s total revenue and has become an important second growth curve for the company. Although power batteries remain the main revenue source, the strategic importance of the energy storage business is increasingly prominent.

According to industry data, China’s new energy storage installed capacity has continued to grow rapidly from 2021 to 2025, and the energy storage industry is in a period of rapid development. With a 40% market share and technological leadership, CATL is expected to continue benefiting from industry growth.

It should be noted that the energy storage battery market is facing fierce competition:

• Haichen Energy Storage
  : Launched 587Ah, 1175Ah/1300Ah long-duration dedicated energy storage batteries, which have achieved mass production and received large orders
• EVE Energy
  : 628Ah cells achieved mass production in December 2024, with the 300,000th cell rolled off the production line in June 2025
• Envision AESC
  : 500+Ah energy storage cells entered mass production in June 2025, and 700+Ah is expected to be realized in 2026

The price of LFP (lithium iron phosphate) cells has continued to decline (from 0.85 CNY/Wh in 2022 to 0.29 CNY/Wh in the first half of 2025), and the industry is facing profitability challenges.

1. Technological Leadership
   : 587Ah cells were the first to achieve GWh-level shipments, maintaining generational technological advantages
2. Cost Advantage
   : Super line technology achieves a 42% cost reduction, enhancing profitability
3. Scale Effect
   : A 40% market share brings significant economies of scale
4. Market Space
   : The global energy storage market continues to grow rapidly, with strong demand-side support

1. Competitors accelerating technological iteration may narrow the technology gap
2. Industry price wars may compress profit margins
3. Overseas market expansion faces geopolitical risks

: CATL’s 587Ah cell technology has the strength to support the energy storage business as a second growth curve. With technological leadership, cost control capabilities, and market position, the energy storage business is expected to continue contributing stable incremental revenue. However, attention needs to be paid to the profit challenges brought by intensified industry competition and downward price pressure.

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[1] Baidu Encyclopedia - Contemporary Amperex Technology Co., Limited (https://baike.baidu.com/item/宁德时代/19308544)

[2] Caifuhao - Long-duration Energy Storage System: A Life-or-Death Challenge for Haichen Energy Storage (https://caifuhao.eastmoney.com/news/20251217130356083354120)

[3] Sina Finance - CATL’s 587Ah Cells Have Shipped 2GWh, Full-Year Shipment Volume Expected to Reach 3GWh (https://finance.sina.com.cn/roll/2025-12-03/doc-infznvhi1850539.shtml)