The world’s leading battery maker restructures to focus on passenger car solutions as it prepares for a surge in demand for new energy vehicles in 2025.

Entering 2025, Contemporary Amperex Technology (CATL) is reshaping its passenger car business, positioning itself for the anticipated surge in new energy vehicle (NEV) adoption.

Key changes include the transition of seasoned leaders into advisory roles as CATL implements a group responsibility system. According to 36Kr, Zhu Wei, executive president of the passenger vehicle department, and Liu Changyan, former head of CATL-Changan EV Battery (a joint venture with Chang’an Automobile), have been promoted but will no longer oversee daily operations. Instead, Han Wei, co-president of CATL’s marketing department, will now manage 12 groups previously under Zhu’s purview. These groups are structured around customer categories, and promotions will hinge on group performance.

Han previously served as president of the passenger car department before assuming his current role from Tu Feng in early 2023.

Under the new structure, promotions will be based on group performance, while seasoned executives like Zhu will take on advisory roles. Industry observers view this as CATL’s effort to empower younger talent, signaling a shift as executives with significant stock incentives and tenure step aside.

Announced over the weekend, the changes have been described as sweeping and abrupt. Zhu, an eight-year veteran at CATL and a familiar figure to automaker procurement teams, has been a key liaison for clients. The shake-up has left some automakers unsettled, particularly as they gear up for imminent price negotiations.

Insiders close to Zhu told 36Kr that his responsibilities have been contracting in recent years. He has concentrated on accounts with emerging automakers, such as Xiaomi, Li Auto, Nio, and Aito, while delegating major international accounts like Tesla to other representatives. These emerging automakers have played a pivotal role in CATL’s growth, with Nio, Li Auto, and Aito now among the company’s top five customers, each generating annual purchases exceeding RMB 10 billion (USD 1.4 billion).

The competitive landscape of the NEV market is evolving at a rapid pace. CATL faces intensifying competition yet remains focused on expanding its market share.

According to insiders, CATL has set ambitious growth targets for installed capacity next year, aiming for a minimum 30% increase, with a stretch goal of 50%. Market data reveals that CATL’s installed capacity surpassed 200 gigawatt-hours in the first three quarters of this year and is projected to reach 300 GWh by year-end—a 100% year-on-year increase. Should next year’s targets be achieved, installed capacity could climb to 500 GWh, supported by plans to boost production capacity to 800 GWh by 2025.

NEV penetration exceeded 50% in the first half of this year, with even steeper growth expected in 2025. CATL has maintained a competitive edge through its ability to stabilize capacity supply, reinforcing its position as a critical player in the rapidly expanding NEV sector.

Sources revealed to 36Kr that several popular car models, including Xiaomi’s SU7 and Nio’s Onvo L60, initially opted for non-CATL battery suppliers during their launches. However, soaring demand and battery shortages ultimately drove these automakers to rely on CATL.

“In terms of execution and capabilities, CATL consistently delivers on par with its market position,” an industry insider said. This reliability has made CATL’s premium production capacity increasingly essential as automakers scale their deliveries. For instance, production capacity released by Li Auto earlier this year was quickly allocated to Aito, Nio, and Xiaomi. “Ultimately, it’s a competition of commitments: whatever you produce, you must deliver,” the insider added.

CATL is also diversifying its product lineup, offering the Shenxing fast-charging battery for cold climates, the Qilin ternary battery for mid- to high-end models, and the Xiaoyao battery for large hybrid vehicles.

Nonetheless, as NEV penetration continues to rise, CATL faces strong competition from BYD. Sources told 36Kr that BYD has long pursued a strategy to capture a third of the market. With October sales reaching 500,000 vehicles, BYD is on track to achieve annual sales of 5–6 million units in the coming year.

Reports indicate BYD is also enhancing its battery offerings, introducing a second-generation blade battery with 6C fast-charging capability. This product is expected to directly challenge CATL’s Shenxing battery.

Both CATL and BYD are scaling their production capabilities with new super production lines, each capable of handling up to 5 GWh, while integrating advanced processes to optimize costs in areas such as injection and formation. “Cost competition will come down to fractions of a cent,” an insider said.

If BYD captures a third of the passenger vehicle market while continuing to serve external customers like Xiaomi, Nio, and Xpeng Motors, it will present a formidable challenge to CATL’s market dominance.

Amid this rivalry, CATL’s ongoing restructuring appears increasingly vital. Power batteries remain the most critical and costly component in NEVs, with automakers locked in an unrelenting pricing war. A carmaker CEO reportedly shared CATL’s Q3 financial results—showing a net profit of RMB 13.1 billion (USD 1.8 billion)—in an internal group chat, questioning how CATL maintained such margins even after issuing rebates to automakers during the quarter.

The demand for battery cost reductions will remain a significant theme as the automotive industry advances toward 2025. The interplay between competition and CATL’s strategic ambitions will determine how the company navigates these pressures. Ultimately, the cost-cutting push underscores the high stakes of sustaining leadership in the rapidly evolving NEV market.

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