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August 17, 2020

CATL targets overseas acquisitions to regain leadership

China’s leading electric vehicle (EV) battery manufacturer Contemporary Amperex Technology Ltd (CATL) last week said it plans to invest up to CNY19.1bn (US$2.75bn) in new businesses and acquisitions to help it keep up with rising global competition.

By bcusack

China’s leading electric vehicle (EV) battery manufacturer Contemporary Amperex Technology Ltd (CATL) last week said it plans to invest up to CNY19.1bn (US$2.75bn) in new businesses and acquisitions to help it keep up with rising global competition.

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The Shenzhen-listed company said it aims to invest in both upstream and downstream companies globally, after it recently emerged that it has fallen behind South Korea’s LG Chem as the world’s largest manufacturer of EV batteries.

South Korea’s SNE Research said CATL enjoyed a 28% share of the global EV battery market last year after it delivered 40.25 gigawatt-hours of automotive lithium-ion batteries. Most of its sales were generated in China, the world’s largest EV market, where it enjoys a 50% market share.But the company’s research also revealed that LG Chem overtook CATL in the first half of 2020 in terms of installed capacity.

CATL founder and chairman Zeng Yuqun last week pointed out that new energy vehicle sales in Europe surged by 52%in the first half of 2020, but fell by 44% in China.

CATL said it will focus mostly on searching for acquisition targets outside China, with as much as US$2.5bn of the acquisition budget could be allocated on overseas expansion as part of its stated “long-term strategic development”. But it will also consider domestic targets when opportunities arise.

CATL already has equity investments in 45 companies, eleven of which are wholly-owned. Most are in the upstream battery materials and mobility industry sectors.

Mr Zeng said in the long term CATL expects its market share in China to fall to around 40%, but expects its overseas share to rise to 20%.

Free Report
img

Gauge the impact of shifting M&A volumes in Automotive

Deal-making sentiment seems to have emerged stronger out of the downturn as M&A activity reached a record high during 2021. The momentum set in towards the end of 2020, continued through 2021 with all the quarters reporting deals with a cumulative value of around $1 trillion across the year.  While most deals-based analyses focus on the win or lose for deal participants, GlobalData's League Tables provide you with insights on the Automotive players benefitting from these M&A volumes. The deal types covered in our report include: 
  • Mergers 
  • Acquisitions 
  • Asset transactions 
  • Private equity buyouts 
Use our report to understand your company’s performance across target regions and get insight into the volumes your competitors are able to generate in your markets of focus. 
by GlobalData
Enter your details here to receive your free Report.

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