New Energy Vehicle Development Lets CATL Grow
As the founder of CATL, Yuqun Zeng, said: the firm should "keep the sense of crisis" at all times, as there is still fierce competition from other global firms.
In early October, the State Council executive meeting in China announced its planning for new energy vehicles’ development. This planning pinpointed the different focal points of government and corporations. It clarified four key points: strengthening R&D in critical technologies, reinforcing infrastructure in charging, encouraging new energy vehicles’ international collaboration and policy support for the public service area.
There are two reasons for China to develop new energy broadly. The first reason is environmental protection, as air pollution in China continues to pose problems for quality of life and health maintenance. The second is energy security. China is still operating as a world factory, consuming massive energy, and this commitment negatively affects air quality.
Under new energy vehicles’ rapid development, there is a higher demand for battery capacity. Following fierce competition, LG, CATL, Panasonic, BYD and Samsung account for 60% of global market shares. Among these five large firms, CATL occupies 21.5% overall market share. One of CATL’s strengths is that it has a completed industrial chain – but it should pay more attention to its management team in the future, which will help build a better corporate culture.