CATL Bets on 'Skateboard Chassis' and Battery Swaps to Dispell Market Concerns (AI Translation)
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文｜财新周刊 安丽敏
By An Limin, Caixin Weekly
宁德时代（300750.SZ）近期舆论热度“高烧不退”。2024年6月17日，因内部号召“实行896工作制”和“奋斗100天”，宁德时代登上热搜。“896”是指每天早上8点上班、晚上9点下班，每周工作六天。
Contemporary Amperex Technology Co. Limited (CATL) (300750.SZ) has recently garnered significant public attention. On June 17, 2024, CATL became a trending topic due to internal calls to implement the "896 work schedule" and a "100-day campaign." The "896" schedule signifies working from 8 a.m. to 9 p.m. daily, six days a week.
一周后，宁德时代创始人、董事长曾毓群在夏季达沃斯论坛上公开回应称，“奋斗100天”是号召大家练好基本功，没有强迫。他还在同一场合说：“我不知道‘卷’这个字是什么意思。”在他看来，“卷”代表价格竞争，而奋斗并不是“卷”。
A week later, Contemporary Amperex Technology Co. Limited (CATL) founder and Chairman Zeng Yuqun publicly responded at the Summer Davos Forum, stating that the "100 days of hard work" campaign was a call for everyone to perfect their fundamental skills and was not coercive. He also mentioned in the same venue, "I don't know what the term 'involution' (卷) means." In his view, "involution" represents price competition, whereas striving hard doesn't equate to "involution."
7月1日，因市场传言两条生产线停产，宁德时代又被推到聚光灯下。资本市场如惊弓之鸟，宁德时代股价一度大跌5%，几乎带崩动力电池板块。宁德时代不得不紧急公开澄清：公司经营和排产情况良好，2024年三季度排产将保持环比增长。
On July 1st, Contemporary Amperex Technology Co. Limited (CATL) was once again thrust into the spotlight due to market rumors of production halts on two of its production lines. Spooked investors caused CATL's stock price to plummet by as much as 5%, nearly dragging down the entire electric vehicle battery sector. CATL had to urgently issue a public clarification, stating that the company's operations and production schedules were proceeding smoothly, and that production for the third quarter of 2024 is expected to maintain sequential growth.
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- CATL has sparked attention with its "896 work schedule" and "100-day campaign," aiming to boost fundamental skills without coercion.
- The company faced rumors of production halts, causing a stock price drop, but clarified that its operations are smooth with expected growth.
- CATL is diversifying and expanding into new markets and technologies such as energy storage, electric ships, battery swapping, and skateboard chassis, aiming to retain market leadership.
Contemporary Amperex Technology Co. Limited (CATL) has become a focal point of public and market attention. This started with news about internal calls for a demanding "896 work schedule" and a "100-day campaign" to perfect skills [para. 1]. Founder and Chairman Zeng Yuqun responded that the campaign was not coercive and did not signify "involution" [para. 2]. On July 1st, 2024, rumors of production halts on two production lines caused CATL's stock to drop by up to 5%, affecting the entire electric vehicle battery sector. The company later clarified that its operations were on track and that production for the third quarter of 2024 would maintain growth [para. 3].
Established in 2011, CATL is a leader in power and energy storage batteries. The attention it gets is due to its industry status and competitive environment. Recent issues indicate that CATL is facing a temporary bottleneck, with challenges such as intensifying price competition, product differentiation issues, and potential technological disruptions [para. 4]. Despite these, CATL reached a market value of over one trillion yuan in May 2021 due to the booming EV market [para. 5].
CATL has been active in adjustments to tackle industry changes. It launched the competitively-priced "Shenxing Battery" in August 2023, provided rebates to automaker clients, and Zeng has taken a direct role in managing factory operations and procurement [para. 6][para. 7]. The company is also focusing on consumer branding by placing advertisements, negotiating to include the "CATL Inside" label on vehicles, and planning to open showrooms [para. 8].
CATL's market share has been rising. Data shows that in the first five months of 2024, CATL's global battery market share rose to 37.5%, and its share in the domestic market rose to 46.4% for the first half of 2024 [para. 9]. However, CATL remains under continuous scrutiny from competitors and the need for a second growth curve to break the current situation [para. 10]. CATL is exploring energy storage, electric ships, electric aircraft, and overseas production expansion [para. 11].
The company has reinvigorated its "Spirit of Struggle" in 2024, aiming to tackle current market changes, a practice familiar to veteran employees from the early startup days [para. 12]. In response to market pressures and a series of price wars, CATL's capacity utilization rate fell to 70.5% by 2023, prompting price cuts even from industry leaders [para. 13][para. 15]. Domestic automakers and competitors have further increased this pressure by developing their own battery technologies or forming strategic alliances [para. 16][para. 17].
To address these pressures and diversify its business, CATL has pursued international expansion. However, this has been met with challenges, including increased tariffs and regulatory obstacles in the U.S. and EU [para. 18][para. 19]. Despite these, CATL's share in Europe has reached 35%, although competition from South Korean firms persists [para. 20][para. 21].
Domestically, CATL has strengthened partnerships with automakers through joint ventures and equity investments in various car companies [para. 22] and has expanded its "circle of friends" by integrating upstream and downstream partnerships [para. 23]. Tapping into the consumer market, CATL aspires to become recognized like "Intel of the electric vehicle era" [para. 24].
In the battery swapping sector, CATL has secured partnerships with several high-profile entities, planning to use battery swapping as a competitive edge in the mainstream market [para. 25][para. 26]. The company aims to standardize and optimize costs through this model while leveraging consumer and policy advantages [para. 27][para. 28]. Skateboard chassis technology is another area of focus for CATL, although it faces skepticism from traditional car manufacturers [para. 29][para. 30].
On new technological fronts such as electric ships and aircraft, CATL has established several independent companies for innovative projects [para. 35][para. 36]. Collectively, these efforts demonstrate CATL's strategic shift from defense to offense, reinforcing its position in the rapidly evolving battery and EV market [para. 37].
- CATL
宁德时代 - CATL (Contemporary Amperex Technology Co. Limited), founded in 2011, is a global leader in the production of power and energy storage batteries. Recently, it's been at the center of controversies regarding its "896 work schedule" and market rumors. Despite challenges, CATL continues to innovate in fast-charging batteries, invests in new technologies like solid-state batteries, and expands globally. The company also pursues diversification into areas like electric ships and planes.
- Geely Automobile
吉利汽车 - Geely Automobile (00175.HK) has launched two battery models—"ShenDun" and "JinZhuan" phosphorous iron lithium batteries—and collaborates with CATL on battery supply and a joint venture. This move is partly seen as applying pressure on CATL, supported by second-tier battery companies.
- BYD
比亚迪 - BYD (002594.SZ) remains a significant competitor to CATL. Originating as a battery manufacturer, BYD disrupted the market with its LFP blade battery, which shifted the focus towards cost efficiency. It further achieved success with long-range plug-in hybrid vehicles, influencing the competition dynamics by providing substantial alternatives to both traditional fuel and pure electric vehicles.
- SAIC Motor
上汽集团 - SAIC Motor (600104.SH) is a key player in the electric vehicle sector and has partnered with CATL for joint battery production. It faces challenges from competitors and new technologies. SAIC Motor also has a subsidiary, SAIC-GM, which has been impacted by EU anti-subsidy tariffs.
- Changan Automobile
长安汽车 - Changan Automobile is among the multiple car companies that have partnered with CATL (Contemporary Amperex Technology Co., Limited) for joint venture battery production. The company is also listed as a recipient of support from CATL’s investment initiatives. Additionally, Changan's Avatr brand is collaborating with CATL's subsidiary, Times Intelligent, on projects involving skateboard chassis technology.
- GAC Group
广汽集团 - GAC Group (Guangzhou Automobile Group) is listed as one of the key car manufacturers collaborating with CATL. They have a joint venture for battery production with CATL and are involved in the electric vehicle market. GAC aims to tackle the increasing market competition and emerging trends by leveraging such collaborations.
- FAW Group
中国一汽 - FAW Group is listed as one of the companies that partnered with CATL (Contemporary Amperex Technology Ltd.) for joint battery production. This partnership is part of CATL's strategy to bind with automakers by co-investing in battery plants to secure supply and foster mutual benefits.
- Dongfeng Motor Corporation
东风汽车 - Dongfeng Motor Corporation is among the domestic mainstream car manufacturers that have partnered with CATL (Contemporary Amperex Technology Co. Limited) to establish joint battery ventures. This collaboration aims to lock in battery supply and foster mutual growth in the electric vehicle sector.
- Nezha Automobile
哪吒汽车 - Nezha Automobile is one of the companies collaborating with CATL's subsidiary, Times Intelligent, on a skateboard chassis project. CATL has also invested in Nezha Automobile. The first product featuring CATL's skateboard chassis from Nezha Automobile is expected to be launched in the second half of 2024.
- NIO Inc.
蔚来汽车 - NIO Inc. (NYSE: NIO), a Chinese electric vehicle manufacturer, plans to launch a third brand called "Firefly," which is in contact with Ningde Times (CATL) for collaboration. NIO focuses on the high-end market with its current brand and second brand, ALPHA. The company owns 2442 of China's 3772 swap stations, representing 65% of the market as of June 2024, and is constructing 1000 more in 2024.
- Beijing Era Power Battery Co., Ltd.
北京时代动力电池有限公司 - Beijing Era Power Battery Co., Ltd. was established on May 17, 2024, with four shareholders including CATL holding 51%, BAIC Motor’s subsidiary holding 39%, and Beijing Jingneng Technology Co., Ltd. and Xiaomi Auto Technology Co., Ltd. each holding 5%. The company is part of CATL's strategy to co-invest in battery production bases with car manufacturers to secure battery supply and expand market presence.
- May 17, 2024：
- Beijing Times Power Battery Co., Ltd. was established with CATL holding a 51% stake.
- June 12, 2024：
- An investment company under CATL appeared on IM Motors’ list of shareholders.
- June 17, 2024：
- CATL became a trending topic due to internal calls to implement the '896 work schedule' and a '100-day campaign.'
- June 27, 2024：
- Geely Automobile launched the 'Shen Dun' LFP short blade battery.
- July 1, 2024：
- Rumors of production halts on two of CATL's production lines causing its stock price to plummet by as much as 5%.
- July 2, 2024：
- During an investor research session, CATL highlighted its strong position in revenue scale, profitability, and cash reserves.
- July 4, 2024：
- Yang Hongxin, chairman and CEO of Svolt Energy, commented on the price-cutting strategies in the battery market.
- July 4, 2024：
- The European Union imposed temporary anti-subsidy duties on electric vehicles manufactured in China.
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