The Chairman of Contemporary Amperex Technology Co.,Ltd. (CATL), Zeng Yuqun, has responded to questions about whether the power battery sector could follow the same challenging path as the photovoltaic (PV) industry.

Zeng Yuqun stated that if companies are not careful, it is entirely possible. He pointed out that while China's PV industry and technology are the best in the world, they are not profitable due to insufficient intellectual property (IP) protection and cutthroat competition. When new technology emerges, it is instantly sold to another company, which quickly copies it. The competitor then sells an identical product at a lower price due to lower R&D investment. The original company is forced to lower its price further, leading to intense internal competition. This internal competition is then exported, with companies undercutting each other in overseas markets. The root cause of all this, according to Zeng, is inadequate IP protection.

From Battery Specialist to Zero-Carbon Tech Pioneer

CATL is attempting to transform from a battery company into a foundational infrastructure provider for a new energy society. As the world's leading power battery manufacturer, CATL has seen its global market share climb to 39.2% in 2025. In the same year, its net profit reached 72.2 billion yuan, surpassing the combined profits of the top ten Chinese automakers by market value.

However, what has been most striking about CATL in recent years is not just its continued dominance in batteries but its rapid expansion into new business areas. This spans transportation (extending from passenger vehicles to commercial vehicles, ships, and aircraft, and into energy replenishment networks), power (with over 30% global market share in energy storage batteries), the grid (leading in distributed microgrids and grid-forming energy storage), industry (providing green energy solutions), critical minerals (investing in resource security and recycling), and even AI (becoming a major shareholder in data center and power supply companies). CATL has also signed zero-carbon city strategic agreements with multiple Chinese cities and accelerated its global footprint with factories and projects worldwide.

Defining the Expansion Logic

When asked about the logic behind this broad expansion, Chairman Zeng explained that it all falls within the company's vision of contributing to the global new energy cause. He outlined three criteria for entering a new field: the market must be large enough, there must be high barriers to entry, and the technology must be adjacent to CATL's existing expertise. He emphasized that expansion should only occur when the company possesses a core competitive advantage, not through low-price competition.

The State of Solid-State Batteries

On the topic of battery technology frontiers, Zeng Yuqun discussed solid-state batteries. He clarified that true solid-state batteries require a fully solid electrolyte under normal conditions. He expressed skepticism about achieving mass commercialization, defined as millions of vehicles equipped, by 2030 due to significant performance and cost hurdles. He stressed that progress is event-driven, not time-driven, and that solid-state battery technology currently sits at a low maturity level with many unresolved scientific and technical challenges, such as solid-solid interface issues.

Sustained Growth Trajectory

Regarding the growth cycle of the new energy sector, Zeng Yuqun believes there is immense room for expansion. With global electric vehicle penetration around 20% and much lower for trucks, ships, and aircraft, plus the emerging demands from robotics, energy storage for grid transformation, and the energy-intensive AI/data center sector, he anticipates double-digit growth for many years to come. He compared the growth potential to data traffic, which is not constrained by physical boundaries, suggesting the expansion could continue until carbon neutrality goals are met around 2060.

Averting the PV Industry's Fate

Reiterating the initial concern, Zeng Yuqun acknowledged that the battery industry already faces similar issues of talent poaching and technology imitation. He stated that low-quality competitors with 60-70% of CATL's performance but 10-20% lower prices are constantly waging price wars. CATL' strategy to avoid a race to the bottom involves protecting IP through legal means, advocating for national policy support, and building an ecosystem. A key initiative is promoting battery-swapping services where batteries are leased, not sold, which he argues demonstrates product quality and protects consumer interests.

The Core of Zero-Carbon Technology

Zeng Yuqun views the battery as a cornerstone, but only one pillar of the zero-carbon technology ecosystem. He identified energy storage as the most critical technology for grid flexibility改造. While China's robust main grid may limit the domestic market for independent microgrids, overseas markets with higher electricity prices present significant opportunities. CATL is developing these technologies domestically to establish standards before exporting them.

Securing Critical Minerals

Zeng dismissed the notion that new energy simply swaps oil dependency for lithium, cobalt, and nickel dependency, highlighting the recyclability of battery minerals versus the combustion of fossil fuels. He estimated that by around 2042, 50% of mineral resources could come from recycled batteries. To ensure supply chain security amid geopolitical tensions, CATL is taking a dual approach: directly investing in resource projects through a newly established company while maintaining partnerships.

Commitment to Globalization

Despite a fragmenting global landscape, Zeng Yuqun remains a strong advocate for globalization. He believes commercial partnerships are more reliable than inter-governmental relations. To navigate local content rules, CATL employs flexible models like local production where required and imports where allowed, adapting the principle of sharing benefits among the company, resource countries, and market countries. He sees challenges as opportunities for business model innovation.

The Driver of the Vision

Zeng Yuqun concluded that commercial viability is the core engine for realizing the zero-carbon technology vision. Without profit, the ecosystem cannot thrive. He emphasized that in a fiercely competitive global environment where CATL does not necessarily have more resources or intellect than rivals, relentless effort is essential. The biggest internal challenge, he noted, is building organizational capability, talent density, and a culture of deep learning to avoid the dangers of superficial understanding.