Contemporary Amperex Technology (3750.HK) has recently been added to the HM1 portfolio, following a recommendation from Munro Partners.
Contemporary Amperex Technology (CATL) is the world's largest battery cell manufacturer, holding around 39% of global market share in 2025. The company operates a vertically integrated model spanning mining, processing, R&D and production. It is a key supplier to the electric vehicle (EV) industry, serving nine of the world's top 10 manufacturers, and is a leader in lithium iron phosphate (LFP) batteries, which are gaining market share due to their lower cost and stronger safety profile.
While EV volume growth may moderate in 2026, larger battery sizes per vehicle and growing demand from commercial trucks are expected to support continued growth. CATL is also expected to benefit from higher oil prices, which can accelerate the adoption of electric transport.
Munro Partners believes a compelling near-term growth opportunity is emerging in grid energy storage systems (ESS), particularly in China, where excess solar generation is often wasted due to limited storage capacity. With ambitious policies supporting rapid ESS expansion, this represents a significant opportunity for CATL, with the ESS market expected to grow by more than 50% in 2026.
The company continues to demonstrate strong execution, guiding to 20–30% volume growth over the next five years. It has also maintained stable margins despite rising lithium costs, supported by pricing mechanisms with customers. At the same time, CATL continues to advance battery innovation, including sodium-ion technology, which could further reduce costs and strengthen its competitive position over time.
