CATL 2025 Annual Results: What the Numbers Mean for Energy Storage

Key takeaways

• CATL shipped 121 GWh of energy storage batteries in 2025, up 29 % year-on-year, ranking #1 globally for the fifth consecutive year.
• ESS revenue reached RMB 62.4 billion (~$8.6 B), representing 14.7 % of total revenue — up from 15.8 % in 2024 in percentage terms, but grew only 9 % in absolute revenue due to falling per-kWh prices.
• The TENER Stack (9 MWh per unit) entered mass production for overseas markets, while the 587 Ah ESS-dedicated cell achieved batch delivery domestically in the TENER 6.25 MWh system.
• Total production capacity reached 772 GWh with another 321 GWh under construction across factories in China, Germany, Hungary, Spain, and Indonesia.
• CATL completed its Hong Kong IPO in May 2025, raising HKD 41 billion — the year’s largest global listing — with 90 % of proceeds allocated to the Hungary factory.

1. Headline numbers

CATL reported total revenue of RMB 423.7 billion for the year ended December 31, 2025, up 17 % from RMB 362.0 billion in 2024. Net profit attributable to shareholders reached RMB 72.2 billion, a 42 % increase.

The improvement was broad-based. Gross margin expanded from 24.44 % to 26.27 %, driven by cost reductions in battery materials and improved manufacturing efficiency. Operating cash flow rose 37 % to RMB 133.2 billion, and the company sat on RMB 299.9 billion in cash at year-end.

R&D spending reached RMB 22.1 billion (+19 %), with 23,000 personnel and 54,538 cumulative patents.

2. Energy storage shipments: 121 GWh

CATL sold 121 GWh of energy storage batteries in 2025, up from 93 GWh in 2024. This represents a 29 % year-on-year increase and maintains the company’s position as the world’s largest ESS battery supplier for the fifth consecutive year (2021–2025), according to SNE Research.

For context, global ESS battery shipments were 550 GWh in 2025 (per SNE Research), a 79 % year-on-year increase. CATL’s implied global ESS market share is roughly 22 %, meaning the market grew faster than CATL’s ESS shipments — a sign that competition is intensifying even as the overall pie expands.

Power battery (EV) sales were 541 GWh, up 42 %, with global market share reaching a record 39.2 %.

3. ESS revenue and margins

The revenue breakdown by product tells an important story:

Segment	2025 Revenue (RMB B)	% of Total	YoY Change
EV batteries	316.5	74.7 %	+25.1 %
ESS batteries	62.4	14.7 %	+9.0 %
Battery materials & recycling	21.9	5.2 %	−23.8 %
Battery mineral resources	6.0	1.4 %	+8.8 %
Other businesses	16.9	4.0 %	−3.3 %

ESS revenue grew just 9 % despite shipments growing 29 %. That gap reflects ongoing per-kWh price erosion — the average selling price per kWh of ESS batteries fell roughly 15–16 % year-on-year. The industry-wide trend of declining lithium carbonate prices continued to compress battery pricing through 2025.

ESS gross margin held stable at 26.71 % (vs 26.84 % in 2024), indicating CATL is maintaining profitability per unit even as prices fall. The company’s scale and vertical integration are absorbing the pricing pressure.

Overseas revenue overall was RMB 129.6 billion (30.6 % of total, +17.5 %), with overseas gross margin at 31.44 % — significantly higher than the 24.00 % domestic margin. CATL does not break out ESS revenue by region, but the overseas premium suggests export-focused ESS products carry better margins.

4. ESS product developments

CATL highlighted several energy storage product milestones in the annual report.

TENER 6.25 MWh

The flagship TENER system achieved batch delivery and grid connection domestically in 2025. Compared to the previous generation, CATL reports a 30 % increase in energy density per unit area and a 20 % reduction in station footprint. The system uses CATL’s 587 Ah LFP cell, which the company says delivers improvements in safety, reliability, energy density, degradation, and system efficiency over earlier cells.

TENER Stack (9 MWh)

CATL launched what it calls the world’s first mass-producible 9 MWh ultra-large capacity energy storage system solution, the TENER Stack. Targeted at overseas markets, it improves volume utilization and energy density further. This positions CATL to compete in the growing segment of multi-hour, utility-scale storage projects where energy density per footprint is a key differentiator.

TENER H

A new container variant adapted for high-temperature scenarios, the TENER H uses what CATL describes as industry-leading high-temperature battery technology to reduce auxiliary power consumption during power station operations, improving project returns in hot climates.

System integration

Beyond cells and containers, CATL is pushing into full system integration. The company reports delivering over 70 system integration projects globally in 2025, with system integration shipments growing more than 160 % year-on-year. Strategic partnerships with Hyperstrong, CRRC Zhuzhou Institute, and Sieyuan Electric were formed during the year, and the company secured GWh-level orders in international markets.

5. Production capacity: 772 GWh and growing

At the end of 2025, CATL’s total lithium battery production capacity was 772 GWh, with an additional 321 GWh under construction. The company operates 24 battery factories and 6 R&D centers globally.

Major capacity expansion projects advancing during 2025 included:

• Domestic: new bases in Zhongzhou, Jining, Fuding, Liyang, and Yibin
• Hungary: Phase I and II construction ongoing — CATL allocated 90 % of HKEX IPO proceeds (HKD 36.6 billion) to this project, with completion expected by December 2030
• Spain: factory joint-ventured with Stellantis
• Indonesia: battery industry chain project

The 772 GWh of installed capacity against 661 GWh of sales implies a utilization rate of roughly 86 %, which is healthy but leaves room for the additional capacity under construction.

6. Hong Kong IPO

On May 20, 2025, CATL listed H-shares on the Main Board of the Hong Kong Stock Exchange under stock code 3750 — making it dual-listed alongside its existing SZSE: 300750 A-share listing.

The offering comprised 155.9 million shares at HKD 263.00 per share, raising gross proceeds of HKD 41.0 billion (~$5.3 billion). It was the largest global IPO of 2025.

CATL stated the HKEX listing establishes an overseas capital operation platform to support globalization, fund the Hungary factory, and give international investors direct access to the shares.

7. Global ESS market context

CATL’s report includes several data points about the broader energy storage market:

• Global ESS battery shipments reached 550 GWh in 2025, a 79 % year-on-year increase (SNE Research)
• China’s new-type energy storage installations reached 189.5 GWh in 2025, up 73 % (China Energy Storage Alliance)
• Key demand drivers cited: clean energy transition policies, rising wind and solar penetration, declining storage costs, and emerging demand from data centers and AI infrastructure
• The European Commission’s European Grids Package (December 2025) was specifically highlighted as supportive of grid-scale energy storage deployment

The 79 % growth in global ESS shipments versus CATL’s 29 % ESS shipment growth suggests other manufacturers — particularly BYD, EVE Energy, Hithium, and others — are growing faster from smaller bases and capturing an increasing share of the expanding market.

8. Sustainability and ESG

CATL’s ESG profile strengthened in 2025:

• MSCI ESG rating: AA (maintained)
• EcoVadis: Silver Medal
• Selected for the S&P Global Sustainability Yearbook and FTSE4Good Emerging Indices for the first time
• All core operation battery factories achieved carbon neutrality in core operations
• Battery recycling: 210,000 tons of spent batteries and materials recovered, up 63 % year-on-year
• 24,000 tons of lithium salts regenerated, up 40 %
• Progressing toward full value chain carbon neutrality by 2035

9. What to watch

Several points from the annual report are worth monitoring:

Price pressure is real. ESS revenue grew only 9 % on 29 % volume growth. If per-kWh prices continue declining, ESS revenue growth will lag shipment growth even further. CATL’s stable margins suggest the company is managing this through cost reduction, but smaller competitors may not have the same headroom.

Market share is slipping. CATL’s implied 22 % ESS market share in a 550 GWh market is strong, but the gap between CATL’s 29 % shipment growth and the market’s 79 % growth means competitors are gaining ground.

System integration is the new battleground. The 160 %+ growth in system integration shipments is arguably the most important operational metric in the report. As the ESS industry matures, battery cell margins will compress further — value is shifting toward full-system solutions, EPC partnerships, and aftermarket services. CATL is building this capability aggressively.

Hungary factory is the European bet. With HKD 36.6 billion committed and completion targeted by 2030, the Hungary plant will be CATL’s gateway for local European ESS manufacturing. European policy (EU Battery Regulation, carbon footprint rules) increasingly favors locally manufactured batteries.

10. Sources

All data in this article is sourced from CATL’s official Annual Results Announcement for the Year Ended December 31, 2025, published on the Hong Kong Stock Exchange on March 9, 2026.

• CATL 2025 Annual Results Announcement (PDF) — Filed on HKEX, 300+ pages, full financial statements and MD&A
• CATL Manufacturer Profile — BESS Manufacturers directory page
• Industry data attributed to SNE Research and the China Energy Storage Alliance as cited in CATL’s report