Analysis of the Contribution of CATL's Energy Storage Business to the Growth of Cathode Material Demand
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According to CATL’s 2024 Annual Report and industry data[0], the global energy storage battery market is showing a high-growth trend. In 2024, global energy storage battery shipments reached
In the cathode material sector, the total output of China’s ternary and lithium iron phosphate (LFP) cathode materials reached
| Indicator | Value | Description |
|---|---|---|
| Global Cathode Material Demand for Energy Storage Batteries | 662,000 tons |
Calculated at 2200 tons/GWh |
| Total Shipments of LFP Cathode Materials in China | 2.427 million tons |
Year-on-year increase of 48.2% |
| Contribution Rate of Energy Storage Increment to LFP Growth | 32.3% |
Energy storage contributes approximately 255,000 tons of increment |
| Cathode Materials Contributed by CATL’s Energy Storage Business | 242,000 tons |
Accounts for 36.6% of global energy storage demand |
According to calculations, CATL’s energy storage business contributed approximately
CATL has locked in a large amount of cathode material production capacity through long-term agreements. It has currently locked in a lithium iron phosphate supply volume of
| Supplier | Agreement Term | Estimated Supply Volume | Contract Amount |
|---|---|---|---|
| Rongbai Technology | 2026-2031 | 3.05 million tons | Over RMB 120 billion |
| Wanrun New Energy | 2025-2030 | 1.3231 million tons | Not disclosed |
| Longpan Technology | 2025 | Cap of RMB 7 billion | RMB 7 billion |
| Dynanonic | Ongoing cooperation | Jointly planned 100,000 tons | - |
| Fulin Precision | Long-term cooperation | 80% of production capacity purchased | Advance payment of RMB 1.5 billion |
Data Source: Company announcements and industry reports[6][7]
- Four Consecutive Global Titles: CATL has ranked first in global energy storage battery shipments for four consecutive years from 2021 to 2024
- Significant Leading Edge: In 2024, its global market share reached 36.5%,23.3 percentage points higher than the second-ranked player[0][1]
- Strong Orders in 2025: CATL has secured over300GWhof energy storage battery-related orders globally[6]
CATL’s energy storage business has demonstrated excellent profitability:
| Indicator | Energy Storage Batteries | Power Batteries | Difference |
|---|---|---|---|
| Gross Profit Margin (2025H1) | 25.52% |
22.41% | +3.11pct |
| Shipments (2025H1) | 55-60GWh | 215GWh | - |
| Year-on-Year Growth Rate | Approximately 30% | Over 30% | Similar growth rates |
The gross profit margin of energy storage batteries is significantly higher than that of the power battery business, making it an important profit contributor for the company[5][8].
- Shenxing Battery Series: Has developed to the 4th generation of high-density lithium iron phosphate technology
- Market Penetration: In 2024, Shenxing batteries and Qilin batteries together accounted for30-40% of power battery sales, and the proportion is expected to rise to60-70%in 2025[9]
| Cell Specification | Launch Time | Technical Features | Impact on Cathode Material Demand |
|---|---|---|---|
| 280Ah | Mainstream | Standard specification | Lays the foundation for demand |
| 314Ah | 2024 | High-density lithium iron phosphate, penetration rate of approximately 40% | Strengthened demand for high-density lithium iron phosphate |
| 587Ah | Mass production in June 2025 | 20% reduction in system components, 15% cost reduction | Drives the application of materials with higher compaction density |
The trend of upscaling energy storage cells has formed a continuous pull on the demand for high-density lithium iron phosphate cathode materials[9].
| Year | Shipments of LFP Cathode Materials in China (10,000 tons) | Proportion of Energy Storage Demand (%) | Contribution by CATL (10,000 tons) |
|---|---|---|---|
| 2025 | 289.0 | 32 | 34.1 |
| 2026 | 320.0 | 35 | 42.0 |
| 2027 | 360.0 | 38 | 52.0 |
| 2028 | 400.0 | 40 | 62.0 |
| 2029 | 440.0 | 42 | 72.0 |
| 2030 | 480.0 | 45 | 85.0 |
With the continuous high-speed growth of the energy storage market, CATL’s contribution to cathode materials is expected to grow from
The contribution of CATL’s energy storage business to the growth of cathode material demand can be summarized into the following four aspects:
- Incremental Driver: In 2024, the increment of cathode materials in the energy storage sector contributed 32.3% to the overall growth of LFP, with CATL contributing approximately 88,000 tons of increment
- Supply Chain Control: By locking in a supply of 2.4 million tons of cathode materials per year through long-term agreements, it ensures raw material supply security and forms an industrial ecological alliance
- Technological Leadership: Through high-density lithium iron phosphate and the upscaling of energy storage cells, it continuously promotes technological iteration and demand upgrading of cathode materials
- Profit Support: The gross profit margin of the energy storage business is 3.11 percentage points higher than that of power batteries, and its strong profitability supports continuous expansion
With the continuous high-speed growth of the global energy storage market, as an industry leader, CATL’s energy storage business will further expand its contribution to cathode material demand, and is expected to contribute approximately
[0] CATL 2024 Annual Report (https://www.catl.com/uploads/1/file/public/202503/20250317094543_6ig9e0mwng.pdf)
[1] SNE Research Global Energy Storage Battery Statistics
[2] SMM 2024 Cathode Material Output Statistics
[3] Loading Volume Data from China Automotive Power Battery Industry Innovation Alliance
[4] EVTank Global Energy Storage Battery Market Report
[5] CATL 2025 Interim Report Review (https://pdf.dfcfw.com/pdf/H3_AP202508011719454461_1.pdf)
[6] Expert Talk on Energy Storage: CATL Increases Investment in Energy Storage Supply Guarantee (https://www.eet-china.com/mp/a468036.html)
[7] Securities Times: Rongbai Technology Signs a Mega Lithium Iron Phosphate Order with CATL (https://www.stcn.com/article/detail/3594308.html)
[8] Energy Storage Headlines: 2025 H1 Energy Storage Rankings
[9] Minmetals Securities: Four Key Focus Areas for the Lithium Battery Industry in 2026 (https://pdf.dfcfw.com/pdf/H3_AP202512311811875727_1.pdf)
Insights are generated using AI models and historical data for informational purposes only. They do not constitute investment advice or recommendations. Past performance is not indicative of future results.
About us: Ginlix AI is the AI Investment Copilot powered by real data, bridging advanced AI with professional financial databases to provide verifiable, truth-based answers. Please use the chat box below to ask any financial question.