EV battery maker CATL sees up to 200 percent jump in profit

EV battery maker CATL sees up to 200 percent jump in profit

Contemporary Amperex Technology Co Ltd. expects its net income to surge to as much as $1.4 billion in the third quarter as the biggest maker of electric-vehicle batteries benefits from strong sales to the automotive industry.

CATL, investing heavily in expanding its production capacity, predicted the profit jump of as much as 200 percent in a stock filing on Monday. The Ningde, Fujian-based company also said net income could top $2.5 billion in the nine months through September, up 132 percent compared to the same period last year.

CATL has made spending commitments in the region of $20 billion to build new, bigger factories at home and abroad including in Hungary with Mercedes-Benz AG, and also plans to tap resource-rich Indonesia for expansion. In August, the manufacturer unveiled half-year results that marked a recovery from a disastrous start to the year. Profit for the six months through June climbed 82 percent to $1.1 billion, as CATL coped better with the volatility in raw-material costs.

South Korean battery maker LG Energy Solution Ltd. reported third-quarter earnings last week that comfortably beat profit and sales expectations, bolstered by demand for EVs and a weak Korean won offsetting high commodity prices.

CATL is expected to release third-quarter results on Oct. 21.

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