Key facts
- CATL achieved carbon neutrality in its core operations by the end of 2025.
- The company aims for value-chain carbon neutrality by 2035.
- CATL's supply chain accounts for over 80% of its products' carbon emissions.
- CATL has implemented a carbon data traceability platform for its supply chain.
- New Green Procurement Guidelines will assess suppliers based on carbon footprints and renewable energy usage.
Chinese electric vehicle battery maker CATL has achieved carbon neutrality across its core operations by the end of 2025 and is now intensifying efforts to decarbonize its supply chain, a move driven by increasing regulatory pressure from Europe.
CATL announced it is the only battery company globally to have reached carbon neutrality in core operations while operating at TWh-scale shipment volumes. Carbon neutrality in core operations signifies net-zero emissions from the company's own production and operational activities, primarily related to electricity and heat consumption in factories. The company reported producing 748 GWh of batteries in 2025, with sales 2.3 times higher than in 2022. Since 2023, CATL has utilized over 18 billion kWh of zero-carbon electricity, leading to a 28% reduction in energy consumption per unit of output and a 77% decline in carbon-emissions intensity over two years, resulting in cumulative emissions reductions exceeding 10 million metric tons of CO2 equivalent.
The company's supply chain accounts for more than 80% of its products' lifecycle carbon emissions, exceeding those from core operations by over five times. To address this, CATL has developed a comprehensive carbon data traceability platform based on its Carbon Chain Management System, covering mineral extraction to component manufacturing. This platform has processed real-world carbon data from over 100 tier-one suppliers, creating more than 1,000 product and raw-material models.
CATL plans to issue Green Procurement Guidelines that will integrate carbon footprints, renewable energy usage ratios, and energy consumption into supplier qualification processes. The company has also launched a Zero-Carbon Supply Chain Empowerment Initiative, with 30 core suppliers participating in collaborative emissions reduction efforts. CATL, alongside suppliers of key battery components, has initiated a joint effort to achieve value-chain carbon neutrality by 2035. Additionally, CATL has formed strategic cooperation agreements with the National Center for Climate Change Strategy and International Cooperation and the Shanghai Environment and Energy Exchange.
Discussion