Chinese EV battery maker Catl forecast net profit growth of 38-48pc for 2023 this week as it expands into overseas markets and launches new products.
The Tesla suppler said it expects to post profits of RMB42.5-45.5bn ($5.96bn-$6.38bn) for 2023.
The results beat analyst expectations in a year which has seen a slowing in the growth of demand for EVs and some supply chain consolidation.
Catl’s growth in Europe and North American markets has doubled since last year, according to SNE Research.
As well as Tesla, Catl supplies Germany's BMW, Mercedes and Volkswagen. The firm has a 37pc market share of the global battery market, well ahead of its closest competitor BYD, which has 16pc.
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The firm is developing new battery technologies including sodium-ion chemistries, which it believes could cost up to 30pc less than lithium-ion batteries for the same energy density.
Fitch Ratings predicts that Catl will maintain a double digit revenue compound annual growth rate (CAGR) between 2024 and 2026.
“We believe high investments in R&D and diversification into other end-markets will allow Catl to maintain its technology leadership and enhance its competitive advantage against local and overseas peers, says a recent Fitch commentary.
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