The Chinese company Catl, the world’s largest battery manufacturer, recorded a net profit growth of nearly 50 percent in the first quarter of 2026. Overall, the results far exceeded expectations, which is remarkable considering the slowdown in electric vehicle sales in China, the largest market in the world for this type of vehicle.
CATL’S FIRST QUARTER 2026 RESULTS BEAT EXPECTATIONS
In the first quarter, Catl’s net profit increased by 48.5 percent year-on-year, surpassing 3 billion dollars (20.7 billion yuan). Analysts expected a much more modest growth, around 21 percent.
Revenues also beat observers’ estimates: they grew by 52.5 percent to about 18 billion dollars, while forecasts indicated a gain of 35.7 percent.
BETWEEN ELECTRIC MOBILITY AND ENERGY STORAGE
The largest contribution to Catl’s revenues comes from batteries for electric vehicles: to date, the company holds a market share of 42 percent (at the end of 2025 it was 39.2 percent) and the closest competitor, the Chinese Byd, does not reach 14 percent (in 2025 it was at 16.4 percent). Catl is the supplier for many of the main electric car manufacturers, such as the American Tesla, the Japanese Toyota, and the Chinese Nio.
However, the Chinese electric mobility market is slowing down, due both to the reduction of purchase incentives and the general worsening of economic conditions. So far, Catl has managed to offset this situation with the sale of batteries for energy storage, useful for supporting renewable parks to stabilize the power grid but also to power data centers for artificial intelligence, for example. Catl recorded an 80 percent year-on-year increase in shipments of storage batteries and holds a 30 percent share in this market globally.
A SUBSIDIARY FOR CRITICAL MINERALS
In addition to announcing the economic results of the last quarter, Catl also announced the creation of a new subsidiary dedicated to mining. The company is called Shidai Resources Group, has a capital of 4.4 billion dollars and will be tasked with ensuring the parent company access to critical resources for batteries, such as lithium and nickel, both in China and abroad.
The competition for these raw materials has been fierce for several years, but it accelerated further with the start of Donald Trump’s second term as President of the United States: the American government even became a shareholder in several mining companies specialized in critical elements, such as Usa Rare Earth and Mp Materials (rare earths), Trilogy Metals (copper, cobalt, gallium, and germanium), and Lithium Americas (lithium).
China, however, remains the dominant player in the supply chains of most critical minerals for energy, technology, and defense. Regarding batteries, it controls about 70 to 90 percent of the global refining capacity of lithium, nickel, graphite, cobalt, and manganese.
