CATL’s First Quarter Profit Climbs as Battery Dominance Pays Dividends

(Bloomberg) — Contemporary Amperex Technology Co. Ltd.’s first-quarter profit rose as its dominance supplying electric-vehicle (EV) batteries offset weakening overall car sales.

Net income climbed 7% to 10.51 billion yuan ($1.5 billion) in the period, CATL said Monday. The manufacturer’s gross margin reached the highest since the third quarter of 2021.

As supplier to major automakers including Tesla Inc., Volkswagen AG and Toyota Motor Corp., CATL plays a key role in China’s grip on the global EV supply chain. The company has vowed to keep expanding in the face of cooling demand for battery-powered cars.