CATL(SZ:300750) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-10 12:27Core Viewpoint - The article highlights the evolving dynamics of the European electric vehicle (EV) market, emphasizing the critical role of Chinese battery manufacturers like CATL in addressing the region's structural challenges in electrification [2][4][5]. Group 1: European Electrification Trends - The electrification rate in Europe increased from 23% to 26% in the first half of 2025, with projections nearing 29% by year-end, indicating a significant rise in the adoption of pure electric vehicles [3][4]. - Despite major automakers like Volkswagen and BMW slowing their electrification efforts, the market data reflects a contrasting trend, showcasing a deep-seated contradiction in Europe's electrification trajectory [3][4]. Group 2: Challenges in Battery Production - European battery production faces a critical bottleneck due to a lack of competitive capabilities in lithium iron phosphate (LFP) batteries, which are essential for reducing EV costs and increasing market accessibility [4][5]. - The European Union is at least five years behind China in the development and production of LFP batteries, a gap that may persist until 2030 [4][5]. - BloombergNEF forecasts a shortfall of 70 GWh in battery capacity for the expected 3.27 million EV sales in Europe by 2025, highlighting the urgent need for local production [4][5]. Group 3: Opportunities for Chinese Battery Manufacturers - The absence of local battery production capabilities in Europe presents a historic opportunity for Chinese companies like CATL and EVE Energy to establish manufacturing plants in the region [4][5]. - CATL's factory in Hungary is projected to have a capacity of 100 GWh, supplying batteries to major European brands, while a joint venture with Stellantis in Spain aims for a 50 GWh capacity by the end of 2026 [5][6]. Group 4: Strategic Collaborations and Market Share - CATL's collaboration with European automakers signifies a shift towards deeper integration of advanced battery technologies, with customized battery solutions being developed for platforms like BMW's Neue Klasse [7][8]. - CATL's market share in Europe reached 35% from January to October 2024, with expectations to exceed 40% in 2025 and potentially surpass 50% by 2027 [8]. - The company's global market share for power batteries reached 37.5% in the first seven months of 2025, reflecting a significant increase from 2020 [8].