CATL Liquid Cooling Strategy 2025: How Thermal Management Secures Global Battery Dominance

CATL’s Commercial Scale Adoption of Liquid Cooling Projects

CATL has transitioned its liquid cooling technology from a differentiating feature in initial large-scale projects to a core enabler of mass-market commercial adoption across the electric vehicle (EV) and energy storage system (BESS) sectors.

• Between 2021 and 2024, CATL focused on proving the commercial viability and reliability of its liquid-cooled BESS through foundational projects, such as the 220 MWh Texas installation with FlexGen and supply agreements for the monumental Gemini Solar + Storage project. This period established the technology’s value in delivering extended cycle life and safety, validated by partnerships with testing bodies like UL Solutions for the EnerOne and EnerC systems.
• Starting in 2025, the strategy shifted to scaling production and standardizing high-performance products for broader markets. The launch of the Qilin CTP 3.0 battery, featuring innovative water cooling plates between cells for 10-minute fast charging, and the 5MWh EnerD BESS, which received China’s first national standard certification, demonstrates a move from bespoke project supply to off-the-shelf, superior solutions.
• The range of applications has diversified significantly, expanding from utility-scale BESS to include high-performance EVs with partners like ZEEKR and Li Auto, industrial energy storage with the EnerC+ system, and decarbonizing global logistics through strategic partnerships with DHL and Maersk. This broad adoption confirms that advanced liquid cooling is a critical requirement across multiple high-growth energy and transport sectors.

CATL’s Strategic Investments in Thermal Management Technology

CATL‘s financial strategy has matured from broad R&D spending to highly targeted, multi-billion-dollar investments aimed at securing the entire battery value chain and scaling the production of technologies reliant on advanced liquid cooling. These investments provide the capital needed to fund manufacturing expansion and continuous innovation in thermal management.

Table: CATL Investment Timeline for Liquid Cooling & Battery Production

CATL’s Partnership Ecosystem for Liquid-Cooled Batteries

CATL has built a dense network of strategic partnerships that has evolved from initial supply agreements to comprehensive, GWh-scale alliances that secure long-term demand and embed its liquid cooling technology across global EV and energy storage value chains.

Table: CATL’s Key Partnerships for Liquid Cooling Technology

CATL’s Geographic Expansion Fueled by Liquid Cooling Demand

CATL has strategically expanded its global presence for liquid-cooled battery systems, moving from initial market entry in North America to securing a dominant position with major projects across Australia, Europe, and the Middle East.

• Between 2021 and 2024, CATL‘s geographic focus centered on penetrating the United States BESS market. Key projects like the 220 MWh Texas installation with FlexGen and the sole supplier agreement for the 1.4 GWh Gemini project in Nevada were critical for establishing credibility and demonstrating the performance of its liquid-cooled technology in a major international market.
• From 2025 onwards, CATL‘s expansion became more global and aggressive, solidifying its market leadership. The company secured a landmark contract worth over $1 billion in Western Australia, entered the Middle East market by supplying BESS for Masdar in the UAE, and deepened its European presence through EV battery agreements with automakers like BMW and Stellantis.
• This geographic shift highlights a strategy of leveraging initial successes in one region to win large-scale contracts in others. The proven reliability of its liquid-cooled BESS in the US market directly supported its ability to secure massive deals in Australia and enter new partnerships for global logistics electrification with DHL and Maersk.

CATL’s Liquid Cooling Technology Reaches Commercial Maturity

CATL‘s liquid cooling technology has progressed rapidly from a key enabling feature to a fully scaled, integrated platform that sets industry standards for performance, safety, and energy density in both EV and BESS applications.

• In the 2021–2024 period, the technology achieved commercial validation through products like the EnerOne BESS. Its integrated frequency conversion liquid cooling system, which limits cell temperature differences to 3°C to achieve a 10,000-cycle life, proved the direct link between advanced thermal management and long-term reliability. Safety was further validated through strategic cooperation with UL Solutions to certify products against the latest UL 9540A test methods.
• From 2025, the technology’s maturity is evident in its deep integration into next-generation products that deliver breakthrough performance. The Qilin battery’s inter-cell cooling plate quadrupled the heat transfer area to enable 10-minute fast charging, while the TENER BESS achieved a 30% increase in energy density and zero degradation in its first five years, both direct results of superior thermal control.
• CATL‘s R&D focus is now shifting to future-facing solutions, including immersion cooling and high-temperature-resistant materials, to manage the thermal loads of upcoming products like its 500 Wh/kg condensed state battery. This proactive development shows that the technology is not only commercially mature but is also the foundation for CATL‘s future product roadmap.

CATL SWOT Analysis: Liquid Cooling as a Strategic Differentiator

Table: CATL SWOT Analysis for Liquid Cooling Technology

Forward-Looking Insights: CATL’s Next Moves in Thermal Management

CATL‘s forward strategy is centered on leveraging its established dominance in liquid cooling to pioneer the next generation of ultra-high-performance batteries, solidifying its competitive moat.

• The most critical near-term development is the mass production and deployment of batteries capable of ultra-fast charging, such as the second-generation Qilin battery with a 6C charge rate and the Shenxing battery. The success of these products in the EV market will validate CATL‘s ability to solve the primary adoption barrier of charging time.
• Watch for further announcements and potential product launches related to immersion cooling. CATL‘s R&D in this area is a direct response to the thermal challenges posed by future battery designs, including its ambitious 500 Wh/kg condensed state cell, and will be a key indicator of its long-term technology roadmap.
• The execution of its massive BESS supply agreements, including the 200 GWh commitment from HyperStrong and large-scale deployments for Masdar and DHL, will be a major validation point. The operational performance of these projects will solidify CATL‘s position as the leading supplier for global grid-scale and industrial energy storage.

Frequently Asked Questions

What is the main shift in CATL’s liquid cooling strategy from 2024 to 2025?
Starting in 2025, CATL’s strategy shifted from proving the commercial viability of liquid cooling in initial large-scale projects to mass-market adoption. This involves scaling production and offering standardized, high-performance products like the Qilin CTP 3.0 battery for EVs and the 5MWh EnerD for BESS, moving from bespoke project supply to off-the-shelf solutions.

How does advanced liquid cooling improve the performance of CATL’s batteries?
Advanced liquid cooling directly enhances battery performance, safety, and lifespan. For instance, the Qilin battery’s innovative cooling plates enable 10-minute ultra-fast charging by quadrupling the heat transfer area. In BESS products like the TENER, superior thermal control results in zero degradation for the first five years and a 30% increase in energy density.

What are some of CATL’s most significant partnerships for its liquid-cooled batteries?
CATL has secured massive, GWh-scale alliances. Key examples include a ten-year strategic partnership with HyperStrong for at least 200 GWh of battery cells, agreements with NextEra Energy and Quinbrook to supply over 10 GWh of BESS each, and strategic partnerships with Maersk and DHL to electrify global logistics with its battery technology.

How is CATL funding its research and expansion in thermal management technology?
CATL is funding its expansion through highly targeted, multi-billion-dollar investments. This includes a $6 billion investment in its global battery value chain, a $4.6 billion Hong Kong IPO for global expansion and R&D, and significant ongoing R&D spending, which amounted to approximately $1.36 billion in the first half of 2023 alone.

What are the next steps for CATL in thermal management technology?
CATL’s forward strategy focuses on pioneering the next generation of ultra-high-performance batteries. Key near-term developments include the mass production of batteries capable of ultra-fast charging (6C rate) and advancing research into future-facing solutions like immersion cooling to manage the thermal loads of its upcoming 500 Wh/kg condensed state battery.