In a rare public critique, Contemporary Amperex Technology Co.,Ltd. (CATL) Chairman Robin Zeng has pointedly accused competitors in a recent interview.

Zeng stated that many new entrants into the battery industry first try to poach employees from CATL or steal some of its technology, then approach equipment and material suppliers to obtain formulas, before combining these elements to launch their own ventures.

This statement reflects a long-running defensive battle that CATL has been fighting. Over the past few years, the company has taken numerous domestic rivals in the new energy supply chain to court, including CALB (3931.HK), Tafer, SVOLT Energy, and Hithium. The cases range from patent infringement and non-compete disputes to trade secret violations, some even escalating to criminal proceedings.

As the global leader in power batteries faces a growing field of challengers, the question arises: why is CATL so frequently engaged in litigation? As of June 12, CATL's shares closed at 394.85 yuan, with a total market capitalization of 1.8 trillion yuan.

Zeng's Fear of a Price War

Zeng provided a direct explanation for the lawsuits: to avoid a price war by protecting intellectual property. He drew a parallel with the solar photovoltaic industry, noting that despite having the world's best technology, Chinese PV companies struggle to be profitable due to insufficient IP protection and cutthroat competition.

He argued that when new technology is quickly copied by rivals who then sell at lower prices due to lower R&D costs, it forces the original innovator to slash prices further, creating a vicious cycle of internal competition that eventually spills into overseas markets.

Zeng criticized the short-term mindset of some purchasers who prioritize immediate cost savings and annual KPIs over long-term product quality, such as battery degradation over several years. He warned that the lithium battery industry has avoided this dire outcome so far only because CATL has been propping up prices, and a collapse would be even worse than in the PV sector.

Beyond words, CATL's actions have been direct. Zeng explicitly stated the intent is to protect IP through legal action, and litigation has indeed become a key tool for the company to defend its market position and challenge competitors.

The Courtroom as a Strategic Battleground

In the history of China's new energy industry, few companies have used legal avenues as frequently as CATL to protect their interests. Its most prominent legal adversary has been CALB.

The feud began in July 2021 when CATL filed five patent infringement lawsuits against CALB, seeking over 600 million yuan in damages, coinciding with CALB's IPO preparations. The legal battles continued, with a notable turn in October 2024 when CALB countersued CATL for patent infringement, seeking approximately 1.007 billion yuan.

Data shows that 16 of CALB's 47 legal cases involve CATL, with CATL being the defendant in eight. Judgments in concluded cases have seen neither side yielding a decisive victory, with appeals and patent validity challenges ongoing. Analysts view this prolonged "patent war" as a fundamental struggle for market share between the two lithium battery giants.

If CALB represents an external challenger, the case against Jiangsu Tafer New Energy Science & Technology Co., Ltd. resembles an internal rivalry. Tafer's founder, Long Huijin, like Zeng, hails from Amperex Technology Limited (ATL), often called the "cradle" of China's lithium battery industry.

CATL sued Tafer for patent infringement in 2020, seeking 120 million yuan in damages and winning a judgment of nearly 23.3 million yuan in 2021. Tafer later gained significant investment and, bolstered by its association with Zenergy (3677.HK), entered the top 10 of domestic power battery manufacturers, becoming a formidable competitor to CATL.

Beyond patent disputes, CATL is particularly vigilant about talent poaching. In 2022, it sued SVOLT Energy for unfair competition related to hiring a former employee who violated a non-compete agreement.

The conflict with storage "dark horse" Hithium, founded by former CATL engineer Wu Zuyu, is even more intense. Since its founding, Hithium's growth has been rapid, with its battery shipments reaching global top three by 2024. However, its path to an IPO has been obstructed, partly by legal challenges from its founder's former employer, CATL.

Legal actions have escalated from a non-compete case against Wu Zuyu resulting in a 1 million yuan penalty, to a lawsuit against another former employee allegedly working for Hithium, and further to a 2025 unfair competition suit against Hithium itself seeking 150 million yuan for alleged mass poaching and technology infringement. The conflict reached a new level with a criminal case involving alleged trade secret leakage by another former employee, Feng Dengke, whose family has publicly proclaimed his innocence, claiming the information was already public. These cases remain ongoing.

Setting the Rules of the Game

Legal experts suggest that CATL's series of lawsuits against Tafer, CALB, and SVOLT Energy are fundamentally about competing for the new energy market. By leveraging its substantial R&D investment and resulting patent portfolio, CATL aims to maintain its competitive edge and market share against a growing number of entrants.

Analysts note that while using legal means for protection is normal for a company, these cases highlight the critical importance of technological barriers for innovative firms. How to sustain a long-term advantage in technological competition is a key challenge for companies driving new quality productive forces, offering lessons for future market competition.

By openly addressing issues of "poaching" and "stealing technology," Zeng is likely speaking to the industry at large, not just specific companies. For him, intellectual property protection is not merely a legal issue but a core industrial competitiveness problem.

His pointed question about why the world's best PV technology doesn't yield profits underscores his belief that without adequate IP protection, innovation is devalued, leading to a profit-destroying cycle of low-price competition. The frequent lawsuits may stem from his fear that the lithium battery industry could follow the PV sector's path. In his view, the greatest threat to the new energy industry is not any single competitor, but the increasingly severe trend of destructive, low-price internal competition.