Contemporary global challenges, from climate change to the evolving automotive industry, are prompting businesses to rethink their models for long-term growth. Robin Zeng, the billionaire founder of Contemporary Amperex Technology Co. Limited (CATL), is leading one such transformation. As the world’s largest battery maker with a commanding 37% share of the global electric vehicle (EV) battery market, Zeng is preparing CATL for the next chapter—one that integrates not just the production of batteries for EVs but a broader vision encompassing green energy systems and electric grids.
In a recent exclusive interview, Zeng revealed his plans to turn CATL into a green energy provider, diversifying beyond batteries into renewable energy solutions and advanced electric grid systems. While the company has become a key player in supplying EV batteries, Zeng’s new vision involves expanding CATL’s role to supply zero-emission power grids capable of powering everything from massive data centers to entire cities.
Building a Zero-Carbon Future: The Green Grid Initiative
CATL’s energy storage business is already growing rapidly, with a 33% increase last year, surpassing the company’s already substantial growth in the EV battery sector. Zeng envisions an even larger opportunity in providing green grid systems that combine solar and wind power generation, energy storage, and smart grid technology that allows energy to be drawn from parked EVs. This ambitious shift could make CATL a significant player not just in energy storage but also in the generation and distribution of green power.
With China already leading the world in EV adoption—over half of all new car sales are electric—Zeng believes CATL can leverage its battery expertise to create zero-emission power systems that can handle the energy demands of large industrial operations or entire cities. One of CATL’s key partnerships is with CMOC Group, a Chinese mining company, for a pilot project in the Democratic Republic of the Congo, which will combine energy storage with renewable power sources. In addition, CATL is collaborating with Hainan, an island province off China’s southern coast, on a more extensive, long-term project integrating energy storage with solar and offshore wind turbines.
Zeng sees this initiative as being “huge compared to EVs,” pointing to the growing demand for green energy in industries like artificial intelligence (AI), which are eager to secure renewable power for data centers. CATL’s future power grids, he says, will be critical to meeting the needs of these companies, which often have the capital but lack the technology to make the shift to 100% renewable energy.
Off-the-Shelf EV Platforms: Reducing Costs and Opening New Doors
CATL’s strategic push into green grids comes as the company continues to solidify its position in the automotive sector. In addition to being a leader in EV batteries, CATL is now developing an off-the-shelf EV platform that could dramatically reduce the costs of electric vehicle development. This platform will feature an integrated long-range battery capable of powering an EV for over 800 km (497 miles) on a single charge. The platform, which is still in development under the code name “panshi,” integrates the battery directly into the chassis, protecting it from potential damage in an accident.
Zeng is targeting automakers and startups alike, with the goal of slashing development costs from billions of dollars to just $10 million for a new EV. This approach would allow small automakers to become profitable by selling only around 10,000 cars a year—creating new opportunities for niche EV firms, particularly in markets without established automotive manufacturers.
The platform has already caught the attention of major players like Porsche and potential investors in the United Arab Emirates, both interested in launching their own EV brands with the help of CATL’s platform. Zeng, however, stressed that CATL is not interested in making cars. Instead, it is focused on providing all the necessary components for carmakers to create their own vehicles. CATL could even provide 3D-printed bodies for the cars, further reducing production costs.
Global Expansion and Challenges in the European Market
In addition to developing the next-generation EV platforms, CATL is actively expanding its production footprint overseas. The company operates a factory in Germany, its first in Europe, and is building a new facility in Hungary. Zeng is optimistic that these plants will be profitable by 2025 and 2026, respectively. The Hungarian plant, which will begin production in 2024, is expected to produce 100 gigawatt hours of batteries at a significantly lower cost than the German facility.
Zeng’s European ambitions are not limited to expanding battery production. CATL has entered into talks with Stellantis, the parent company of brands like Jeep and Peugeot, to jointly build a battery plant in Spain. This partnership, expected to be finalized in early 2024, represents a critical move for CATL as it seeks to cement its position as a key supplier for European automakers, which have been under pressure to meet stringent clean energy transition targets.
However, Zeng is highly critical of the European Union’s decision to impose tariffs of up to 45.3% on Chinese EV imports. He believes the decision is misguided, calling it “stupid thinking.” According to Zeng, European automakers would be better off partnering with Chinese companies to bring lower-cost EVs to market, as is already being done with Chinese automaker Leapmotor’s collaboration with Stellantis. Zeng contends that China is already ahead of Europe in EV development and that European firms could benefit from learning from China’s advanced capabilities.
A Strategic Shift in Lithium Mining
In an interesting strategic move, CATL has also made adjustments to its lithium mining operations. Zeng revealed that CATL halted production at a significant lithium hub in Jiangxi Province in September 2023, due to the fall in lithium carbonate prices. The decision to pause production was part of a broader strategy to reduce the cost of lithium—one of the critical materials in battery production—by controlling supply.
CATL’s intervention in the lithium market has attracted attention and criticism from competitors who argue that the company’s size gives it undue influence over prices. Zeng, however, maintains that the goal was never to drive rivals out of business but rather to “maintain oxygen for everyone” by ensuring the industry remains competitive and profitable. Despite these challenges, CATL continues to work towards maintaining a balance between controlling costs and sustaining a healthy supply chain for battery materials.
Solid-State vs. Sodium-Ion Batteries: The Future of EV Power
Zeng has also weighed in on the debate over solid-state batteries, often touted as the next breakthrough in EV battery technology. While CATL has a dedicated team of researchers working on solid-state batteries, Zeng is skeptical about their potential to revolutionize the industry in the near future. He believes that sodium-ion batteries, which are cheaper and more abundant than lithium, present a better opportunity for growth. Sodium-ion batteries also have the potential to reduce fire risks in EVs, an important consideration for the industry.
CATL is already offering sodium-ion batteries in combination with lithium-ion batteries for certain EVs, which Zeng believes could replace up to half of the current market for lithium-iron phosphate batteries. These advancements will help CATL further consolidate its dominance in the battery industry, offering an alternative to traditional lithium-based power sources.
CATL’s Vision for the Future
Robin Zeng’s bold vision for CATL extends far beyond its current role as a battery supplier. By pivoting towards energy storage, green grids, and affordable EV development platforms, CATL is positioning itself to shape the future of both the automotive and energy industries. With its ambitious plans to create zero-emission power grids capable of supplying energy to large cities and mining operations, CATL is not just powering vehicles—it’s setting the stage for a greener, more sustainable future.
Through strategic partnerships and investments, CATL is positioning itself at the forefront of the global green-energy revolution. As the company continues to push boundaries in EV technology, green grids, and energy storage, CATL is setting a new precedent for how companies can lead the transition to a low-carbon future while driving innovation and growth.
(Source:www.reuters.com)
In a recent exclusive interview, Zeng revealed his plans to turn CATL into a green energy provider, diversifying beyond batteries into renewable energy solutions and advanced electric grid systems. While the company has become a key player in supplying EV batteries, Zeng’s new vision involves expanding CATL’s role to supply zero-emission power grids capable of powering everything from massive data centers to entire cities.
Building a Zero-Carbon Future: The Green Grid Initiative
CATL’s energy storage business is already growing rapidly, with a 33% increase last year, surpassing the company’s already substantial growth in the EV battery sector. Zeng envisions an even larger opportunity in providing green grid systems that combine solar and wind power generation, energy storage, and smart grid technology that allows energy to be drawn from parked EVs. This ambitious shift could make CATL a significant player not just in energy storage but also in the generation and distribution of green power.
With China already leading the world in EV adoption—over half of all new car sales are electric—Zeng believes CATL can leverage its battery expertise to create zero-emission power systems that can handle the energy demands of large industrial operations or entire cities. One of CATL’s key partnerships is with CMOC Group, a Chinese mining company, for a pilot project in the Democratic Republic of the Congo, which will combine energy storage with renewable power sources. In addition, CATL is collaborating with Hainan, an island province off China’s southern coast, on a more extensive, long-term project integrating energy storage with solar and offshore wind turbines.
Zeng sees this initiative as being “huge compared to EVs,” pointing to the growing demand for green energy in industries like artificial intelligence (AI), which are eager to secure renewable power for data centers. CATL’s future power grids, he says, will be critical to meeting the needs of these companies, which often have the capital but lack the technology to make the shift to 100% renewable energy.
Off-the-Shelf EV Platforms: Reducing Costs and Opening New Doors
CATL’s strategic push into green grids comes as the company continues to solidify its position in the automotive sector. In addition to being a leader in EV batteries, CATL is now developing an off-the-shelf EV platform that could dramatically reduce the costs of electric vehicle development. This platform will feature an integrated long-range battery capable of powering an EV for over 800 km (497 miles) on a single charge. The platform, which is still in development under the code name “panshi,” integrates the battery directly into the chassis, protecting it from potential damage in an accident.
Zeng is targeting automakers and startups alike, with the goal of slashing development costs from billions of dollars to just $10 million for a new EV. This approach would allow small automakers to become profitable by selling only around 10,000 cars a year—creating new opportunities for niche EV firms, particularly in markets without established automotive manufacturers.
The platform has already caught the attention of major players like Porsche and potential investors in the United Arab Emirates, both interested in launching their own EV brands with the help of CATL’s platform. Zeng, however, stressed that CATL is not interested in making cars. Instead, it is focused on providing all the necessary components for carmakers to create their own vehicles. CATL could even provide 3D-printed bodies for the cars, further reducing production costs.
Global Expansion and Challenges in the European Market
In addition to developing the next-generation EV platforms, CATL is actively expanding its production footprint overseas. The company operates a factory in Germany, its first in Europe, and is building a new facility in Hungary. Zeng is optimistic that these plants will be profitable by 2025 and 2026, respectively. The Hungarian plant, which will begin production in 2024, is expected to produce 100 gigawatt hours of batteries at a significantly lower cost than the German facility.
Zeng’s European ambitions are not limited to expanding battery production. CATL has entered into talks with Stellantis, the parent company of brands like Jeep and Peugeot, to jointly build a battery plant in Spain. This partnership, expected to be finalized in early 2024, represents a critical move for CATL as it seeks to cement its position as a key supplier for European automakers, which have been under pressure to meet stringent clean energy transition targets.
However, Zeng is highly critical of the European Union’s decision to impose tariffs of up to 45.3% on Chinese EV imports. He believes the decision is misguided, calling it “stupid thinking.” According to Zeng, European automakers would be better off partnering with Chinese companies to bring lower-cost EVs to market, as is already being done with Chinese automaker Leapmotor’s collaboration with Stellantis. Zeng contends that China is already ahead of Europe in EV development and that European firms could benefit from learning from China’s advanced capabilities.
A Strategic Shift in Lithium Mining
In an interesting strategic move, CATL has also made adjustments to its lithium mining operations. Zeng revealed that CATL halted production at a significant lithium hub in Jiangxi Province in September 2023, due to the fall in lithium carbonate prices. The decision to pause production was part of a broader strategy to reduce the cost of lithium—one of the critical materials in battery production—by controlling supply.
CATL’s intervention in the lithium market has attracted attention and criticism from competitors who argue that the company’s size gives it undue influence over prices. Zeng, however, maintains that the goal was never to drive rivals out of business but rather to “maintain oxygen for everyone” by ensuring the industry remains competitive and profitable. Despite these challenges, CATL continues to work towards maintaining a balance between controlling costs and sustaining a healthy supply chain for battery materials.
Solid-State vs. Sodium-Ion Batteries: The Future of EV Power
Zeng has also weighed in on the debate over solid-state batteries, often touted as the next breakthrough in EV battery technology. While CATL has a dedicated team of researchers working on solid-state batteries, Zeng is skeptical about their potential to revolutionize the industry in the near future. He believes that sodium-ion batteries, which are cheaper and more abundant than lithium, present a better opportunity for growth. Sodium-ion batteries also have the potential to reduce fire risks in EVs, an important consideration for the industry.
CATL is already offering sodium-ion batteries in combination with lithium-ion batteries for certain EVs, which Zeng believes could replace up to half of the current market for lithium-iron phosphate batteries. These advancements will help CATL further consolidate its dominance in the battery industry, offering an alternative to traditional lithium-based power sources.
CATL’s Vision for the Future
Robin Zeng’s bold vision for CATL extends far beyond its current role as a battery supplier. By pivoting towards energy storage, green grids, and affordable EV development platforms, CATL is positioning itself to shape the future of both the automotive and energy industries. With its ambitious plans to create zero-emission power grids capable of supplying energy to large cities and mining operations, CATL is not just powering vehicles—it’s setting the stage for a greener, more sustainable future.
Through strategic partnerships and investments, CATL is positioning itself at the forefront of the global green-energy revolution. As the company continues to push boundaries in EV technology, green grids, and energy storage, CATL is setting a new precedent for how companies can lead the transition to a low-carbon future while driving innovation and growth.
(Source:www.reuters.com)