CATL is expanding beyond electric car batteries into heavy truck battery swapping infrastructure. Heavy trucks use battery packs about seven times larger than typical passenger EVs, creating a new growth market as commercial transport goes electric. In China, new energy heavy trucks accounted for 37% of sales in the first eight months of 2026 and over 50% in September.
CATL plans 900 heavy truck swap stations by end of this year, scaling to 10,000 across China long-term. The strategy benefits CATL threefold: more batteries circulate than trucks, swappable batteries generate recurring rental revenue, and swapping stations can charge during low electricity prices and sell stored power when prices rise. This infrastructure approach helps offset falling battery prices and commoditization.
CATL's third-quarter sales rose 59% year-on-year, though net profit increased only 14.5%. While battery swapping remains a small part of CATL's business, the company is clearly transitioning from selling EV batteries to building an infrastructure business for road transport and stationary energy storage. Shares trade at about 11 times forward earnings, down sharply from a year ago as investors await this transformation.
Source: Financial Times Companies · Summarized by HeadlinesBriefing