Contemporary Amperex Technology Co Ltd (CATL), a battery supplier to Tesla Inc TSLA and Nio Inc NIO, has estimated its net profit during the July-September quarter to nearly triple from a year earlier, supported by significant expansion in production, reported Reuters.
What Happened: The world’s biggest battery maker, which accounts for more than a third of global EV sales, said it expects third-quarter net income to rise to between 8.8 billion yuan ($1.23 billion) and 9.9 billion yuan, up from 3.3 billion yuan last year, according to the report, which cited a stock exchange filing. The company expects net profit for the first nine months of 2022 to more than double from a year-ago period.
CATL shares were trading nearly 6% higher in mainland China at the time of writing.
Also Read: Best Investment Apps
The company also stated it has ramped-up efforts in market expansion in addition to the capacity planned earlier. “Production and sales significantly increased, which helped to secure its persistently leading position in the global market and result in rapid profit growth,” it said. CATL is reportedly planning to set up manufacturing plants in the United States and is in the final stages of evaluating sites.
Growth Forecast: CATL’s profit estimates and production expansion plans are an indication of how upbeat battery-makers are on their growth prospects.
According to MarketsandMarket Research Private Ltd. the global EV battery market is projected to grow at a CAGR of 19% from $56.4 billion in 2022 to $134.6 billion by 2027.
Image and article originally from www.benzinga.com. Read the original article here.