Dec. 25 (NBD) -- Contemporary Amperex Technology Co Ltd ("CATL", 300750.SZ), one of Chinese largest power battery suppliers, saw a rise of 5.83 percent for its stock on Wednesday which closed at 105.3 yuan (15 U.S. dollars) per share and remained the most valuable on Nasdaq-like ChiNext.

43 pct in share price rise year to date

It is noteworthy that CATL, as one of best performing stock of the lithium battery sector in the A-share market, posted a surge of 43 percent this year as of December 25.

Being among the top power battery manufacturers around the world, CATL reported increase in both market share and battery installation volume in the recent three years.

Photo/VCG

Last year, the Ningde-based company won the first spot in terms of installed power battery capacity with 24.9 GWh generated by the company, followed by Japanese electronics giant Panasonic and Chinese new-energy vehicle and battery maker BYD, showed statistics from research organizations GGII and Evergrande Research Institute.

CATL grabbed 21.9 percent of the market share in 2018, slightly higher than Panasonic's 21.4 percent and nearly twice BYD's 12 percent.

National Business Daily noticed that benefiting from the boost of electric car industry, the entire power battery industry has been on the fast track of growth since 2011.

The global new-energy vehicle sales soared nearly 40 times between 2011 and 2018. As a result, the total delivery volume of power battery amounted to 106 GWh in 2018, rising more than 97 times 2011's 1.08 GWh.

Securities firm bullish on power battery

The policies launched by different countries also motivate the rapid development of the power battery market.

China, which is the largest growth contributor, announced its plan in December this year that the sales and production volume of new-energy cars is to account for around 25 percent of those for all vehicles by 2025. Norway expects to ban the sale of fuel-powered vehicles by 2025, and France, Spain, Britain and Portugal will impose the ban by 2040.

In April 2019, the European Union agreed to cut car CO2 emissions by 15 percent and 37.5 percent for 2025 and 2030, respectively, relative to a 2021 baseline.

Industry insiders held due to the growing sales and climbing penetration of the new-energy cars, the power battery domain still has huge potential of expansion in the coming years.

Looking forward, Guotai Junan Securities was bullish on the sector and held in a report that the profit margin in the global power battery industry is to reach 140 billion yuan (around 20 billion U.S. dollars) by 2030, based on the assumption that 100 million cars will be sold and the penetration rate of new energy vehicle is to reach 30 percent at the time.   

Email: gaohan@nbd.com.cn