Earned 72.2 billion in a year, but CATL has paid more attention to sodium batteries

On March 9th, CATL held an earnings presentation that attracted the attention of approximately 1,350 global investors.

The results are impressive. By 2025, CATL achieved operating revenue of 423.7 billion yuan, a year-on-year increase of 17%; net profit attributable to shareholders of the listed company was 72.2 billion yuan, up 42%; lithium battery sales reached 661 GWh, with global market share rising to 39.2%.

Such performance prompted a swift response from the capital market. By the close of trading on March 10th, CATL’s A-shares increased by 5.26%, and Hong Kong stocks rose by 9.34%.

Beijing News Shell Finance reporters noted that in the 2025 annual report, CATL mentioned sodium batteries 10 times, highlighting that the abundant reserves of sodium can effectively reduce dependence on lithium resources. During the earnings call, investors inquired extensively about sodium and solid-state batteries, which is a necessary scrutiny for a battery giant with a trillion-dollar market cap.

In the current era of rapid technological competition, can CATL seize the advantage with sodium batteries?

10 Mentions of Sodium Batteries in the Annual Report

Beyond the net profit of 72.2 billion yuan, CATL’s “blood-making capacity” is equally remarkable: it also has a net cash flow from operating activities of up to 133.2 billion yuan, and by the end of the period, cash and tradable financial assets totaled nearly 392.5 billion yuan.

Holding substantial funds means what? During industry downturns, it allows for counter-cyclical expansion; when technological paths are uncertain, it provides enough room for trial and error. CATL can temporarily step away from solely profiting from battery sales and has the capacity to define the rules for the next generation of energy infrastructure.

In the entire conference, two out of the three initial responses from CATL mentioned the same keyword—sodium batteries.

“The company is confident in the commercialization prospects of new sodium batteries and is committed to accelerating their application across the entire industry chain,” CATL stated openly during the meeting. It also revealed that brands like Changan Auto’s Aevita will be equipped with CATL’s sodium batteries, and deep collaborations with multiple automakers are steadily progressing.

When investors asked whether rising raw material prices like lithium carbonate would impact the company, CATL straightforwardly emphasized that if lithium carbonate prices continue to rise, the application scenarios and market penetration of sodium batteries are expected to further expand.

Beijing News Shell Finance reporters found that in the 2024 annual report, CATL mentioned sodium batteries only three times, briefly describing the progress of R&D. However, with the release of the world’s first large-scale production sodium battery in April 2025, the 2025 annual report mentions sodium batteries 10 times, repeatedly stating that “the abundant reserves of sodium can effectively reduce dependence on lithium resources.”

On December 28, 2025, at the supplier conference, CATL also publicly announced that in 2026, the company will large-scale deploy sodium batteries in swap stations, passenger vehicles, commercial vehicles, and energy storage, potentially creating a new trend of “dual stars shining in sodium and lithium.”

These statements are akin to CATL’s “positive strategy”: developing sodium batteries alongside lithium batteries to achieve “multiple legs walking.”

In response to questions about the progress of solid-state batteries, management answered confidently: “The company has over ten years of R&D experience in solid-state batteries and continues to increase investment in this area.” “Solid-state batteries still face some engineering challenges, and industrialization and commercialization will take time. Our products will only be launched when their overall performance and safety are fully leading and truly ready for commercial deployment.”

The Cost of Technological Iteration and Globalization

Behind the huge profits, the road is not smooth.

In 2025, CATL recognized an additional 2.66 billion yuan in fixed asset impairment provisions. When asked during the conference about the reasons for the large impairment in Q4 2025, CATL explained that it was mainly due to increased inventory and fixed asset impairments. The primary reason for fixed asset impairment was ongoing technological upgrades to production lines, with the recoverable amount calculated to be lower than the asset’s cost, leading to impairment.

This also reflects the industry’s self-revolution and “intense competition.” With continuous technological breakthroughs and rapid capacity obsolescence, even a state-of-the-art production line built a few years ago may now be considered outdated and require impairment. This is a cost CATL must pay to maintain its 39.2% global market share.

“Industry-standard capacity is not scarce; what is truly scarce in the market is high-quality capacity that meets high-quality development needs and directly addresses customer pain points,” CATL is well aware. “Looking back at the development history of the lithium battery industry, the industry has always grown resiliently amid structural oversupply concerns.” Homogeneous, ordinary capacity is rapidly depreciating, and the shadow of price wars has never truly disappeared. CATL attempts to isolate itself from the chaos through technological advantages.

If technological iteration is an internal challenge, globalization presents an even greater one.

When investors asked about the unit investment intensity of overseas projects in Hungary, Spain, and other countries compared to domestic projects, CATL responded that due to differences in land, construction costs, and policies across countries, overseas capacity investments tend to be regionally higher than domestic.

Regarding the latest progress of the Hungarian factory, the company revealed, “Phase one has basically completed equipment installation and debugging by the end of 2025, and is steadily advancing toward production. The capacity ramp-up and achieving stable yield on the line will take some time.”

As CATL transforms from a Chinese supplier to a global operator, will its proud cost advantages be diluted by higher overseas construction and operational costs?

Can It Support the New Infrastructure Blueprint?

In December 2025, CATL’s subsidiary Fengfei Aviation’s silver-gray eVTOL (electric vertical takeoff and landing aircraft) took off, and the world’s first zero-carbon water airport for eVTOLs was officially delivered and put into operation.

CATL is no longer just a car battery manufacturer. Its reach extends to zero-carbon parks, electric ships, low-altitude economy, and virtual power plants.

CATL’s founder and chairman, Zeng Yuqun, wrote in a letter to shareholders: “Batteries are no longer just components of transportation tools or energy storage devices but will become fundamental units supporting energy system buffering, stability, and dispatching.”

This perhaps offers the most comprehensive picture of CATL’s future. When AI computing centers demand stable power, when deserts and Gobi regions need storage for wind and solar power, and when the low-altitude economy calls for high-energy-density power sources, CATL hopes to build a new infrastructure landscape within these domains.

How to balance geopolitical risks amid global headwinds? How to avoid misjudging routes amid rapid technological iteration? How to maintain sharpness under a trillion-dollar market cap? These are the challenges CATL faces.