In a recent conversation, Contemporary Amperex Technology Co.,Ltd. (CATL) Chairman Robin Zeng shared his views on the battery industry's competitive landscape and his company's strategic direction.

He pointed out that many new entrants into the battery sector immediately attempt to poach talent or acquire technology from CATL. These competitors, he noted, often produce imitations with only 60-70% of the performance but compete aggressively on price. This strategy is enabled by short-term thinking in the market, where procurement decisions focus on immediate cost savings and annual KPIs, overlooking long-term product quality and safety. Zeng argued that the lithium battery industry has avoided the severe price erosion seen in solar photovoltaics primarily because CATL maintains price discipline. He warned that if CATL were to engage in a price war, the consequences for the industry could be worse than in solar.

Expanding Business Frontiers

CATL is actively transforming from a battery manufacturer into a foundational infrastructure company for a new energy society. Its expansion spans multiple sectors. In transportation, its batteries power everything from passenger cars to commercial trucks, ships, and aircraft, supported by a growing battery swap network. In power, CATL holds over 30% of the global energy storage battery market, with its system integration business surging 160% in 2025. The company is also a leader in grid-side technologies like distributed microgrids and grid-forming storage, while exploring flexible grid and virtual power plant solutions. It provides green energy solutions for heavy industries like mining and steel. In critical minerals, CATL is investing heavily in resource security and advancing battery recycling. It has also entered the AI infrastructure space, becoming a major shareholder in data center and power supply companies to secure a role in the era of compute-power synergy. Furthermore, CATL has signed zero-carbon city partnerships with numerous Chinese municipalities and is accelerating its global footprint with factories in Europe and Indonesia and projects worldwide.

Strategic Rationale for Diversification

When asked about the logic behind this broad expansion, Zeng stated that all initiatives fall within CATL's vision of contributing to the global new energy cause. He outlined three criteria for entering new fields: a sufficiently large market, high barriers to entry, and adjacent technologies where CATL can leverage its existing expertise. He emphasized that CATL avoids areas like life sciences where it lacks core competency. In AI, the focus is not on competing with AI firms but on providing the essential energy solutions that power data centers and AI operations.

Perspectives on Battery Technology

On technology, Zeng dedicated most of his attention to advancing fundamental battery tech and AI data center (AIDC) energy solutions. He downplayed the near-term potential of solid-state batteries, describing them as currently at a low technology readiness level (TRL 4) with significant unresolved scientific challenges, such as solid-solid interface issues. He believes commercialization should be event-driven by technological breakthroughs, not by arbitrary timelines. Beyond solid-state, he sees ample room for improvement in areas like high-voltage cathode materials.

Sustained Growth Trajectory

Zeng expressed strong confidence in long-term growth across new energy sectors. He highlighted that global electric vehicle penetration is only around 20%, with trucks, ships, and planes far lower, indicating vast room for expansion. The rise of robotics and the massive need to retrofit grids for renewable integration present further opportunities. He compared the growth potential of digital "tokens" in AI to mobile data traffic, suggesting it is virtually unbounded by physical limits, potentially extending growth for decades until carbon neutrality is achieved.

Avoiding the Solar Industry's Fate

Discussing lessons from the troubled solar industry, Zeng attributed its problems to insufficient intellectual property protection and vicious price competition driven by rapid technology copying. He acknowledged similar pressures exist in batteries, with rivals imitating CATL and competing on price. To counteract this, CATL focuses on protecting its IP, advocating for stronger regulations, and building an ecosystem. A key strategy is promoting battery-swapping services ("battery-as-a-service"), which leases high-quality batteries rather than selling them. This model, Zeng argues, proves the value and durability of CATL's products and protects consumers from inferior batteries.

Transition to a Zero-Carbon Tech Firm

Zeng framed the shift from a battery company to a "zero-carbon tech company" as building the essential pillars for a new energy society, with batteries being just one foundational element. He identified energy storage as the key technology for grid flexibility. While China's robust main grid offers limited immediate need for independent microgrids, CATL is developing such technology domestically to create standards and advanced products for overseas markets where electricity costs are much higher and demand for resilient, distributed power is strong.

Securing Critical Minerals

Zeng dismissed concerns that new energy simply swaps oil dependency for reliance on lithium, cobalt, and nickel, emphasizing that these minerals are recyclable, unlike fossil fuels. He projected that by 2042, 50% of battery raw materials could come from recycled sources. To secure supply amidst geopolitical uncertainties, CATL is directly investing in mineral resources while maintaining partnerships.

Commitment to Globalization

Despite a fragmenting global landscape, Zeng stressed that CATL must actively promote globalization. He believes durable commercial partnerships are more reliable than inter-governmental relations. The company adapts its local footprint—through joint ventures, licensing, or local production—to meet market requirements, flexibly sharing value with resource and host countries rather than sticking to a rigid formula.

Core Drivers and Challenges

Zeng concluded that commercial viability is the core engine for realizing the zero-carbon vision, as profit attracts participants to build the necessary ecosystem. On corporate culture, he highlighted that intense global competition in technology and products leaves no alternative to a striving, dedicated work ethic. Looking ahead, his greatest concern is internal: building organizational capability, talent density, and a relentless learning culture to execute the company's ambitious vision effectively.