CATL profit jump fuels Hong Kong battery stocks amid global energy storage boom

Betting on rising global demand for energy storage, shares of Chinese lithium battery makers continued to rally on Wednesday, led by Contemporary Amperex Technology Ltd (CATL), which reported stronger-than-expected growth driven in part by its expansion into new energy storage markets.CATL shares surged more than 10 per cent to HK$608 during morning trading hours in Hong Kong on Wednesday – the highest level in five months – before closing 9 per cent higher at HK$599.50. That followed another 9 per cent increase on Tuesday.Earlier this week, the battery giant reported a 42 per cent growth in net profit to 72.2 billion yuan (US$10.5 billion), with its smaller energy storage segment delivering higher margins than its dominant electric vehicle (EV) battery business.CATL topped global energy storage battery shipments for the fifth consecutive year in 2025, according to Seoul-based consultancy SNE Research.Speaking at the Battery Show Asia 2026 in Hong Kong on Tuesday, CATL general counsel John H. Kwon said the company’s EV and energy storage battery businesses currently accounted for 80 per cent and 20 per cent of its operations, respectively. He said he expected the ratio to move towards 50:50 in the coming years, with energy storage potentially surpassing EV batteries over the long term.Visitors view an energy storage solution exhibit in Shanghai. Photo: Xinhua