Key facts
- CATL's share of battery installations in China was 41.45% in August.
- Chinese state media criticized the 'de-CATLization' narrative in the EV industry.
Hong Kong-listed shares of CATL plunged 10% during midday trade Wednesday, after disappointing third-quarter earnings heightened investors' concerns about its prospects. The battery maker released its profit figures for the latest quarter on October 20. Chinese state media criticized the electric vehicle (EV) industry's "de-CATLization" narrative, warning that portraying supply chain adjustments as efforts to break free of leading suppliers could undermine industry collaboration. CNII, a media outlet under China's Ministry of Industry and Information Technology (MIIT), said in a commentary on Tuesday that adding suppliers and pursuing in-house development are normal business practices and should not be framed as a confrontation between automakers and battery producers. The commentary comes as several Chinese automakers diversify their battery sourcing. Supply chain adjustments and automakers' in-house battery development plans have recently fueled market concerns over the competitive position of CATL. China's auto industry has worked hard to build global competitiveness in certain core components, and encouraging more companies to grow should not come at the expense of established leaders, the commentary said. It warned that low-price competition in the new energy vehicle (NEV) industry is spreading upstream, and battery procurement driven excessively by short-term cost considerations could reduce the emphasis on technology, quality and long-term reliability. On automakers' in-house battery development, the commentary acknowledged that expanding upstream can help differentiate products and strengthen supply chain resilience, but said marketing claims should reflect actual technical capabilities. Some companies' in-house development work focuses mainly on battery pack design, system integration, battery management systems (BMS) or product definition, the article said. These activities are distinct from cell development and consistent manufacturing at scale. The article did not single out any automaker's in-house development claims. The debate comes as companies including Li Auto expand the use of their own battery designs and deepen ties with other battery suppliers. Li Auto said on September 7 that its in-house-developed batteries were already used in the Li L8, Li L6 and Li i8, with plans to gradually extend them across its entire lineup. The company said its in-house cell development began in 2020, with work spanning 5C cells, battery packs and battery management systems. A joint venture it established with Sunwoda in 2025 manufactures the batteries. Xiaomi has also expanded its battery supplier lineup to include CATL, FinDreams, CALB and Sunwoda, reflecting Chinese automakers' efforts to broaden their sourcing. These changes have yet to dislodge CATL from its leading position in China's power battery market. Its share of battery installations was 41.45% in August, slightly below July's 42.33%, according to the China Automotive Battery Innovation Alliance (CABIA). The CNII commentary also warned that automakers seeking to bring every capability in-house and duplicate investment across the supply chain could create redundant capacity and misallocate resources. It stressed that CATL, BYD and other battery producers should all face open market competition and consumer choice, while diversified supply chains can strengthen industry collaboration.