CATL's Class A shares closed Friday's session at 369.11 yuan, marking a 1.7% gain. The stock traded within a range of 358.01 to 372.88 yuan, with approximately 393,700 lots changing hands. The company's market capitalization stood near 1.68 trillion yuan.
Strategic Battery Development
The share movement followed renewed attention on the company's sodium-ion battery initiative, developed in partnership with Changan Auto. The collaboration targets a 2026 vehicle launch, positioning the technology as a strategic alternative to lithium-heavy batteries. CATL claims its Naxtra cells achieve an energy density up to 175 watt-hours per kilogram, with a 45-kWh pack delivering up to 400 km of range. The company projects this could reach 500–600 km as production scales.
Chief Technology Officer Gao Huan described the launch as "the beginning of a dual-chemistry era." The company highlights the technology's cold-weather performance, stating it offers nearly triple the discharge power of lithium iron phosphate batteries at -30°C and retains over 90% capacity at -40°C.
Market Context and Challenges
CATL's shares have risen roughly 5.5% over the past week and surged close to 40% in the last six months. Sodium-ion technology is not presented as a direct replacement for lithium batteries but as a complementary chemistry, potentially offering cost advantages and robust performance in extreme conditions for more budget-conscious vehicle segments.
The path to commercialization presents hurdles, including scaling production consistently and managing yields. The competitive landscape remains intense, with electric vehicle manufacturers aggressively cutting prices and battery suppliers under pressure to demonstrate clear cost and warranty metrics.
Investor Focus Shifts
With Shenzhen markets set to reopen on Monday, investor scrutiny will center on whether the recent momentum sustains. A key question is how much of the sodium-ion strategy is backed by firm orders versus longer-term expansion plans.
The next significant catalyst is the earnings report scheduled for March 21. This release is expected to provide critical details on profit margins, capital expenditure, and the extent to which sodium-ion technology features in the company's 2026 financial guidance.
