CATL Expands Into AI Battery Software After Global Surge

CATL (Contemporary Amperex Technology Co. Limited), China’s battery powerhouse, has grown from a newcomer in 2011 to controlling nearly 40 percent of the global EV battery market.

In 2017 alone, CATL produced 11.8 GWh of batteries—outpacing Panasonic and BYD—and it has maintained industry dominance ever since. With manufacturing scale, rich datasets, and global customer relationships in hand, CATL is now entering the high-margin world of AI-driven battery monitoring and software services. This shift marks a strategic evolution, allowing the company to capture value across the entire battery lifecycle—from production to real-time energy management.

Key Highlights

• CATL now controls ~40 percent of the global EV battery market
• The company is expanding into AI-based battery monitoring software
• Faces geopolitical scrutiny in the U.S. but accelerates growth in Europe

The global market for battery simulation and monitoring software is expected to grow significantly, with estimates projecting a $15 billion value by 2032. CATL’s software will enhance battery efficiency, safety, and lifespan, helping the company reduce dependency on commoditized hardware.

However, geopolitical tensions pose hurdles. The Pentagon labeled CATL a “Chinese military company” in 2024, casting uncertainty over U.S. partnerships like the Ford battery licensing deal. In response, CATL has ramped up European expansion, including new factories and a Hong Kong IPO aimed at funding EU operations.

Also Read: CATL's Hong Kong Premium Signals Global EV Battery Confidence

Backed by early partnerships with companies like BMW and government support, CATL’s trajectory from hardware giant to software innovator underscores how battery leaders are adapting to new market realities—blending physical infrastructure with intelligent software ecosystems to remain competitive in a shifting global landscape.