China’s leading electric vehicle (EV) cell supplier, CATL, is expanding its horizons beyond just supplying batteries for electric cars. The company is now venturing into the realm of batteries for power grids, with plans to develop and manage green energy power grids for various sectors such as mines, cities, and data centers.
In a recent interview, CATL founder Robin Zeng highlighted the potential for zero-carbon electric grids to be ten times larger than the market for EV batteries. Currently, CATL commands a significant share of the global market for electric vehicle batteries, holding a 37% market share.
Zeng is looking towards the future and aiming to diversify CATL’s portfolio by tapping into the power grid sector. This move echoes Tesla’s successful foray into the energy market, with Elon Musk’s prediction that Tesla’s energy business would eventually surpass its automotive division. Tesla Energy has indeed lived up to expectations, reporting a record gross margin of 30.5% in Q3 2024.
By venturing into batteries for power grids, CATL is positioning itself as a key player in the transition towards sustainable energy solutions. The company’s expertise in battery technology, coupled with its market leadership in electric vehicle batteries, makes it well-equipped to address the growing demand for green energy solutions in various industries.
As CATL embarks on this new chapter, it is poised to capitalize on the increasing global focus on renewable energy and sustainability. By leveraging its experience and resources in the EV battery market, CATL aims to play a pivotal role in shaping the future of energy grids and contributing to a cleaner and greener world.
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