(Bloomberg) – Shares in the world’s largest EV battery maker hit an all-time high on Thursday amid news that spurred an optimistic outlook for the industry.
Shares of Contemporary Amperex Technology Co., a supplier to Tesla Inc., jumped 8.6% in Shenzhen, climbing from a March low to more than 50%. CATL has driven the growth of not only electric vehicles, but also green energy companies. BloombergNEF’s outlook and China’s move to develop the sector, including the governor’s pledge of the People’s Bank of China and Ghana to boost support, boosted growth.
Investor appetite for a Chinese company that has benefited from a worldwide drive to reduce carbon emissions is growing. BloombergNEF analysts expect global annual sales of electric passenger vehicles to rise to 14 million in 2025 from 3.1 million in 2020, while demand for lithium batteries will increase rapidly and approach 4.5 TWh per year by 2035.
BloombergNEF analysts note that this year “marks the first major increase in our EV forecast in five years,” driven by factors such as growing political support, accelerating investment and growing consumer demand. “Meeting this demand requires an unprecedented but achievable increase in the production of materials, components and elements.”
Chinese firms reported better-than-expected electric vehicle sales last month. Reuters reported that Apple Inc. is in preliminary negotiations with CATL and BYD Co. on the supply of batteries for your electric vehicle.
Shares in electric vehicle maker BYD, which traded on Thursday without the right to receive the next dividend, jumped about 6% in Hong Kong, while shares in solar module maker LONGi Green Energy Technology Co. grew by 7.8%.
Battery supplier Guangzhou Tinci Materials Technology Co. rose 7.1%, while Tianqi Lithium Corp. – by 3.6%.
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