Robin Zeng - Founder and CEO of CATL | In Good Company | Norges Bank Investment Management

Summary

In this interview, Robin Zang, CEO of CATL, the world's largest battery producer, discusses the company's dominance with a 37.5% market share. He attributes the success to meeting market needs with the right technology and products, focusing on innovation rather than seeing others as competitors. Zang emphasizes the importance of understanding electrical chemistry and the challenges of scaling production while maintaining quality. He also highlights the potential for Europe's battery industry and CATL's commitment to renewable energy and sustainability.

Takeaways

• 🔋 **Market Dominance**: CATL holds a significant market share of 37.5% in the battery production industry, making it the world's largest battery producer.
• 🚀 **Product Focus**: CATL's success is attributed to focusing on the right products and technology, meeting market needs and consumer demands.
• 🌿 **Innovation Driven**: The company's philosophy is centered on continuous innovation, particularly in chemical and material science, to improve battery performance.
• 🚗 **Automotive Applications**: CATL's batteries power millions of electric vehicles, including models from Tesla and various Chinese and international car manufacturers.
• ♻️ **Energy Storage**: CATL also produces batteries for energy storage, helping to stabilize supplies from renewable energy sources like wind turbines and solar cells.
• 🏆 **Long-term Commitment**: CATL's journey to market leadership took 12 years, but the team's experience spans a quarter-century, dating back to the early days of lithium-ion batteries for consumer electronics.
• 🌐 **Global Competition**: CATL views itself as its own biggest competitor, focusing on self-improvement rather than seeing other companies as threats.
• 🏭 **Manufacturing Expertise**: CATL's expertise in scaling up production and maintaining high-quality standards is a key differentiator in the battery market.
• 🔬 **Research and Development**: CATL employs over 20,000 engineers and researchers, including hundreds of PhDs, focusing on various aspects of battery technology from materials to software.
• 🌱 **Sustainability**: CATL is committed to contributing to climate change mitigation and sustainability through renewable energy innovations.
• 🌟 **Cultural Emphasis**: The company culture at CATL emphasizes innovation, personal growth, and the collective mission to excel in renewable energy technologies.

Q & A

What is the current market share of CATL in the battery production market?

As of the interview, CATL holds a market share of approximately 37.5%, although Robin Zang, the CEO, corrects this to a precise figure of 37.5%.

What are the two major products that CATL produces?

CATL produces two major types of batteries: one for electric vehicles, which can be found in models like Tesla's Model 3 and Model S, and another for energy storage, particularly for renewable energy sources like wind turbines and solar cells.

How long did it take CATL to reach a 37.5% market share?

It took CATL almost 12 years to reach a 37.5% market share from zero. However, the team's experience in the industry spans a quarter-century, starting with lithium-ion batteries for mobile phones and consumer electronics.

Who does Robin Zang consider CATL's main competitor?

Robin Zang considers the main competitor to be themselves, emphasizing the need for continuous self-improvement, especially in the area of electrochemical materials.

What is the significance of state support in CATL's success?

State support in China is multifaceted, with a focus on quickly responding to consumer demands and rolling out high-quality products. This has helped CATL and other Chinese companies to establish a strong position in the market.

How many people does CATL employ in research and development?

CATL has over 20,000 engineers and talented individuals working in various aspects of battery technology, including basic materials research, cation research, and the development of future chemistries.

What is the most challenging aspect of battery production according to Robin Zang?

The most challenging aspect is understanding the electrochemical system in the real world, predicting future risks, ensuring reliability, and scaling up production while maintaining low costs.

What are Robin Zang's views on the future of battery technology and innovation?

Robin Zang does not see a significant acceleration in innovation. He believes that the industry is looking for substantial innovations and that there will be new chemistries that will emerge, potentially leading to solid-state batteries being a game-changer.

How does CATL approach its supply chain strategy?

CATL carefully understands the advantages of different materials and the future trends in applications to decide on mining investments. They also aim to establish supply chains gradually, with a current focus on China, but with plans to work with countries like Norway for graphite production.

What is CATL's corporate culture according to Robin Zang?

CATL's corporate culture is focused on innovation, especially in renewable energy, and creating a platform to help individuals grow both spiritually and materially. They aim to contribute excellently to human society in terms of renewable energy.

What advice does Robin Zang give to young people in China and Europe?

Robin Zang advises young people to be patient and strive for success, emphasizing that everyone has a chance to achieve their goals.