China Ministry Publication Pushes Back Against 'De-CATLisation' Chatter
State publication defends battery giant CATL as automakers diversify suppliers and shares decline.
Quick Look
A publication under China’s industry ministry rejected 'de-CATLisation' market chatter as automakers diversify battery suppliers and CATL shares fall.
AI-generated summary
Why It Matters
CATL's automotive partners expanded partnerships with other battery suppliers and announced in-house battery development plans.
A publication under China’s industry ministry has pushed back against market chatter of “de-CATLisation” as a growing number of the battery giant’s automotive partners diversify their suppliers, with the company’s shares falling recently.
The publication followed several Chinese carmakers, including Xiaomi, Li Auto and Xpeng, expanding partnerships with battery suppliers other than CATL or announcing plans to develop batteries in-house. The moves this month have fuelled talk of a shift away from the industry giant and speculation about its market position.
By Wednesday, CATL’s Shenzhen-listed shares had fallen about 25 per cent from their mid-August level and nearly 35 per cent from a record high reached in early May. The shares were down 1.19 per cent on the day.
Open Questions
- Will other automakers follow suit?
- How will CATL respond to supplier diversification?
