Chinese battery giant CATL reported a 42 percent net profit increase to 72.2 billion yuan earlier this week, sparking gains in battery makers listed in Hong Kong and mainland China. The company's strong results and push into energy storage have fueled a global boom in the sector.
CATL, the world's leading battery maker, saw its strong performance lift Hong Kong battery stocks. On Wednesday morning, CATL shares in Hong Kong surged more than 10 per cent to HK$608, the highest level in five months, before closing 9 per cent higher at HK$599.50. This followed a 9 per cent increase on Tuesday.
Earlier this week, the battery giant reported a 42 per cent growth in net profit to 72.2 billion yuan (US$10.5 billion). Its smaller energy storage segment delivered higher margins than its dominant electric vehicle (EV) battery business.
Speaking at the Battery Show Asia 2026 in Hong Kong on Tuesday, CATL general counsel John H. Kwon said the company’s EV and energy storage battery businesses currently accounted for 80 per cent and 20 per cent of its operations, respectively. He expected the ratio to move towards 50:50 in the coming years, with energy storage potentially surpassing EV batteries over the long term.
This development underscores the global energy storage boom, driving gains across battery makers listed in Hong Kong and mainland China. CATL's energy storage push is seen as a key driver for its future growth.
