CALB Shares Rise as Portuguese Battery Factory Plans and 2024 Profit Forecast Announced

February 24, 2025 - CALB (03931.HK)（中创新航）opened 4.04% higher and closed up 1.55% at HK$17.08, with a total market value of HK$30.27 billion, following two major announcements. The positive movement comes as news emerges about CALB's Portuguese battery factory and an encouraging 2024 profit forecast.

 

Portuguese Battery Factory Investment of €2 Billion

 

According to multiple media reports on February 21, CALB Chairwoman Liu Jingyu revealed the company's decision to invest €2 billion (approximately RMB 15.179 billion) to build a battery factory in the Sines Industrial Logistics Park in Portugal. Construction has already begun, with deliveries expected to start in 2027.

 

The factory is projected to have a production capacity of 15GWh and will employ the latest generation of lithium battery technology. It aims to become a key supplier to Europe's electric mobility industry. Due to its scale and strategic importance, the project has been granted "Project of National Interest" (PIN) status by the Portuguese government and has successfully obtained special grid access rights to meet its substantial energy requirements.

 

source: CALB

CALB first announced plans for a European industrial base on November 2, 2022. On that day, the company signed a memorandum of cooperation with the Portuguese government in Sines, marking CALB's official entry into Portugal for its European operations.

 

According to previous CALB announcements, the project is planned for an industrial zone near the Port of Sines. This port is strategically located in Europe's logistics hub as the continent's second-largest deep-water port capable of 24-hour operations. It is Portugal's only port that can accommodate the world's largest container ships and houses Portugal's largest rail freight platform, operating over 5,000 container trains to and from inland Europe annually. CALB is committed to developing this project into a globally leading, highly intelligent, information-driven, automated zero-carbon factory.

 

On November 25 of the same year, CALB signed cooperation agreements with Quadrante and Coba, internationally renowned design teams that will provide design services for CALB's Portugal factory.

 

With this updated progress information, CALB has placed an important "chess piece" in its European industrial strategy, further completing its global blueprint of "nine industrial bases and five R&D centers" worldwide.

 

It's worth noting that on December 21, 2021, CALB signed an agreement with Germany's Dürr for the "CALB European Lithium Battery Factory Construction Project." According to that agreement, CALB's European project planned to build power battery capacity of 20GWh+.

source: CALB

Strong 2024 Earnings Forecast

 

On the morning of February 24, CALB issued a profit alert, projecting 2024 net profit to be approximately RMB 786 million to 874 million, representing an increase of about 80% to 100% compared to the same period last year.

 

CALB attributes this growth to two main factors: economies of scale realized through business expansion and continuous growth, and the company's leading technology and product capabilities that have enabled improved product performance while continuously reducing costs.

 

Throughout 2024, CALB has maintained momentum in both power and energy storage sectors. Through continuous innovation, development of cutting-edge technology and products, and deepening customer relationships, the company has achieved rapid development both domestically and internationally, driving steady profit growth.

 

In the power battery business, according to the latest data from Korean research institute SNE Research, CALB has surpassed Panasonic and SK On to become the world's fourth-largest producer in global power battery installations for 2024, with 39.4GWh installed.

 

This success stems from CALB's differentiated strategy to optimize strategic layout, strengthen domestic market cooperation, and fully develop international markets. The company has added multiple international clients, driving steady growth in installations and deliveries.

 

In addition to stable mass production and delivery for brands such as GAC, Geely, XPeng, NIO, and Leapmotor, CALB added new vehicle models from a leading new energy vehicle manufacturer, AITO, and others in 2024, while securing nominations for new platforms and projects from international customers including Toyota, Volkswagen, Ford, Audi, and Mazda. For hybrid vehicles, the company added Chery, Dongfeng, BAIC, and other leading customers for mass production of their main models. In commercial vehicles, CALB has achieved full coverage of mainstream market products. Notably, in the first half of 2024, CALB's market share in the UK electric bus market exceeded 50%, with its ternary VDA products ranking first in supply volume.

 

In the energy storage business, CALB's energy storage cells have also achieved sustained significant growth in shipments. According to InfoLink data, CALB's ranking in global energy storage cell shipments has risen dramatically from tenth place in 2023 to the top five in 2024.

 

In the growing 300Ah+ market segment, CALB's 314Ah energy storage cells were the first in the industry to achieve large-scale, stable delivery. In 2024, the company won the 7.8GWh Sungrow Power Saudi Arabia energy storage project and Europe's largest 4.4GWh energy storage project, establishing a solid foundation for future rapid growth of its 314Ah cells.

 

CALB is well-prepared to "conquer" 2025 and beyond. On one hand, CALB's global strategy continues to advance steadily. Its Thailand module and pack factory has already begun mass production and delivery, while the Portugal battery factory is expected to break ground this year, injecting new momentum into CALB's global layout and helping the company exert greater influence in overseas markets.

 

On the other hand, as a battery expert, CALB has made thorough technological and product preparations for the next round of market competition in both power and energy storage.

 

In the power battery sector, CALB launched two "top-tier" 5C ultra-fast charging batteries in 2024: the "Top-tier" 5C Ultra-fast Charging LFP Battery and the "Top-tier" Ultra-charging Super Range-extended Battery. The former has already been adopted by XPeng Motors' Kunpeng Super Electric System and will be used in multiple new XPeng models, while the latter is scheduled for market launch in 2025. CALB has also unveiled its "Boundless" all-solid-state battery technology and "Long-range" series commercial batteries. The "Boundless" all-solid-state battery has an energy density of 430Wh/kg and capacity exceeding 50Ah, with significant breakthroughs in battery operating pressure, lifespan, and power, planned for vehicle installation in 2027. The "Long-range" series commercial batteries cover light trucks, heavy trucks, rail transit, and maritime sectors.

 

In the energy storage sector, CALB launched its "Long-lasting" series of new products in 2024, including the second-generation 314Ah energy storage cell, third-generation 392Ah energy storage cell, and the 625Ah+ energy storage-specific cell using new processes.

 
Conclusion

 

The global new energy industry is undergoing an accelerated reshaping process. The future landscape of the global power and energy storage battery industry will inevitably see new changes. CALB is actively making breakthroughs across multiple dimensions including technological innovation, industrial upgrading, and global strategic layout. These efforts will further enhance the company's comprehensive competitiveness and help it secure a commanding position in the intensely competitive market.