Founded in 2011, CATL is the world’s largest lithium ion battery supplier, controlling just under a third of the global market in 2024, according to Rho Motion. Examining how CATL’s revenue mix has shifted over time provides insight into the battery industry’s development and future direction.

What did CATL’s revenue split look like pre-2020?

In 2017, CATL generated around $2.5 billion from EV battery sales, accounting for over 83% of its total revenue. By contrast, Battery Energy Storage Systems (BESS) sales totalled just $2.3 million, less than 1% of total revenue. By 2020, BESS revenue had grown to $282 million, representing around 4% of total turnover. Over the same period, EV battery revenue increased by over 130% to $5.7 billion, making up 78% of all revenue. The remainder came from subsidiary operations, smaller business lines such as battery components and services.

How did CATL change as business from 2020 to 2023?

The early 2020s demonstrated the speed at which battery markets could expand, and CATL’s ability to dominate them. From 2020 to 2022, the company’s income streams became noticeably more diverse. In 2021, revenue from “Battery Materials and Recycling” reached $2.1 billion, while “Battery Mineral Resources” contributed $324 million.

Although these were significant additions to the business, the BESS segment emerged as CATL’s fastest growing income stream, accounting for over 10% of revenue in 2021 and 13% in 2022. 

Read: How do profit margins vary across key battery producers? 

Why did revenue slowdown from 2023 to 2024?

Revenue growth slowed markedly in 2023: total sales rose just 16%, compared with 142% the previous year. From 2023 to 2024, overall sales volumes increased, but revenue fell by 11% due to declining cell prices, partly a result of lower raw material costs and increasing market competition.

However, during the preceding phase of rapid expansion, CATL integrated vertically across the supply chain and further diversified its income streams. By 2024, EV battery sales still represented the bulk of the business, 70% of total revenue, but the contribution from other segments was steadily rising.

Will revenue growth return?

Looking ahead, EV batteries are expected to remain CATL’s primary revenue driver. Nevertheless, the rapid five-year expansion of the BESS market has highlighted its growing importance within the company’s portfolio.

CATL is already benefiting from economies of scale and vertical integration, enabling it to improve product margins. Revenues across all segments are expected to show strong growth in coming years with H1 2025 results being the best indicator to how CATL will continue in the future.  

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