Ford EV Partner CATL Posts Q2 Profit Amid Weakened Demand

July 29, 2024 3:25 pm

Contemporary Amperex Technology (CATL) is not only one of the largest battery manufacturers on the planet, but it also recently signed a deal with Ford to license its lithium-iron phosphate (LFP) technology to the automaker, which will enable it to build LFP units at the future BlueOval Battery Park Michigan site. However, even though Ford has scaled back its planned output at that site amid weaker than expected growth in EV demand, CATL continues to defy the odds.

According to Automotive News, even as its chief rival – LG Energy Solution – posted weaker than expected financial results in Q2 2024- losing 23.7 billion won ($17 million) – CATL managed to post a profit of 12.35 billion yuan ($1.7 billion) over that same time period – 13 percent higher than Q2 2023, and higher than initial estimates. Over the first half of the year, CATL also posted a 10 percent gain in terms of net income, landing at 22.9 billion yuan ($3.15 billion USD).

Meanwhile, CATL also saw its global market share rise 2.3 percentage points to 37.5 percent in May, as well as 45 percent in China alone. However, falling raw materials costs have also driven the price of cells downward, which led to a 12 percent decline in revenue over the first half of 2024, to 166.8 billion yuan ($23 billion USD). This also gives CATL a bit of an edge over the competition, however, given its scale and vertical integration.

As Ford Authority recently reported, it doesn’t seem as if CATL will be negatively impacted by new U.S. tariffs on Chinese goods either, even after a group of lawmakers also recently asked the Biden Administration to add CATL to its import ban list over claims that it uses forced labor – allegations the company has denied. As such, CATL may look to license its LFP battery tech to other companies besides Ford. Currently, The Blue Oval already utilizes that company’s LFP battery in the standard range versions of the Ford Mustang Mach-E following a swap back in the 2023 model year, too.

We’ll have more on CATL soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

By Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.