CATL Shares Hit Record High on Solid-State Battery Push and Storage Boom
Shares of the world's largest battery manufacturer, Contemporary Amperex Technology Co. Limited (CATL), surged to a record high, driven by a major breakthrough in next-generation solid-state battery technology and an explosive rise in demand for energy storage systems. The dual catalysts underscore the company's strengthening grip on the global transition to green energy and electrified transportation.
CATL’s Shenzhen-listed shares soared as much as 14% on September 15, hitting an all-time high of RMB 371 per share before closing at RMB 358.88. The company's Hong Kong-listed stock also climbed nearly 10% to a record, reflecting strong investor confidence in its strategic positioning and technological pipeline.
The rally was fueled by the company's recent international patent filing for a key solid-state battery technology and a new government policy aimed at dramatically expanding China's energy storage capacity. The developments position CATL to capitalize on two of the most critical growth sectors in the new energy economy.
Following the news, Pacific Securities raised its 2025 net profit forecast for CATL to RMB 65.49 billion, a projected year-on-year increase of 29.06%. This signals a bullish outlook on the company's ability to convert its technological lead into financial performance.
Solid-State Battery Breakthrough
CATL has signaled a significant step forward in the race for next-generation power sources with a new international patent application. The patent covers core components including solid-state materials, cathode layers, and the solid electrolyte membrane. The company is now targeting mass production of its solid-state batteries within the next two years and has already established a 50 GWh annual production capacity at its Chongqing facility.
Solid-state batteries promise to revolutionize the electric vehicle market by offering energy densities of 400-500 Wh/kg, more than double that of conventional lithium-ion batteries. This advancement is expected to enable EVs with a range of 1,000-1,200 kilometers on a single charge, effectively eliminating "range anxiety" for consumers. The company’s commitment to innovation is reflected in its R&D spending, which reached RMB 10.095 billion in the first half of 2025, up 17.48% from the previous year.
Energy Storage Demand Surges
The energy storage market is experiencing an unprecedented boom, providing another powerful growth engine for CATL. On September 12, China's National Development and Reform Commission and National Energy Administration unveiled a plan to install over 180 gigawatts (GW) of new energy storage capacity by 2027, a move expected to drive direct investment of approximately RMB 250 billion yuan (US$34.3 billion).
Market data from 2025 already shows surging growth, with domestic energy storage contract awards exceeding 210 GWh between January and August, a 1.5-fold increase year-on-year. Globally, energy storage cell shipments hit 240.21 GWh in the same period, up 106.1%. As the market leader, CATL shipped 55 GWh of energy storage cells in the first half of 2025, capturing a 36% global market share. The company recently released TENER Stack, a 9 MWh large-scale storage system, to meet this growing demand.
Diversified Technology Portfolio
Beyond its flagship solid-state program, CATL is pursuing a diversified technology strategy to maintain its competitive edge. The company's first sodium-ion battery recently passed national certification standards for use in energy storage. Its innovative product lineup also includes the second-generation Shenxing battery, an LFP cell capable of an 800-kilometer range and 12C peak charging rates, alongside a new sodium-ion battery for passenger cars. This broad portfolio hedges against technological shifts and addresses a wider range of market segments.
Reshaping the Global EV Landscape
The commercialization of solid-state batteries is set to reshape the entire new energy vehicle supply chain. Premium auto brands are already beginning to adopt the technology, with models like the Nio Inc. ET9 and BMW's NEXT series featuring solid-state batteries. Penetration in vehicles priced above RMB 400,000 has reportedly surpassed 30%.
The technology is also unlocking new markets. The emerging low-altitude economy, including electric vertical take-off and landing (eVTOL) aircraft, requires batteries with exceptional energy density and safety, creating a new avenue for growth. Furthermore, large-scale energy storage projects in the U.S. and the Middle East provide a stable source of future demand.