CATL Wind Power Strategy 2025: From Battery Supplier to Vertically Integrated Energy Player
CATL’s Commercial Shift: From BESS Supplier to Wind Power Integrator
CATL has strategically evolved from a component supplier for wind projects into a direct participant and integrated solutions provider for the entire renewable energy ecosystem. This shift is marked by a transition from supplying Battery Energy Storage Systems (BESS) to third parties toward building its own generation assets and creating comprehensive “wind, solar, and storage” solutions for industrial and municipal clients.
- Between 2021 and 2024, CATL‘s primary role in the wind sector was as a BESS supplier, enabling large-scale renewable projects like the Gemini Project in Nevada and forming foundational partnerships with energy infrastructure companies such as POWERCHINA and Sungrow. The pivotal announcement of its intent to build a $1.83 billion offshore wind farm in January 2024 signaled a decisive move toward vertical integration.
- From 2025 to today, CATL executed this strategy by making a direct investment in Fujian Runshi Offshore Wind Power Co., Ltd., marking its entry into power generation. The company also established a new commercial application for its technology by developing zero-carbon industrial parks with partners like Zenith Steel Group and Dongying City, using integrated wind and storage systems to decarbonize heavy industry.
- This strategic pivot is validated by the sheer scale of its recent commercial agreements, which far surpass earlier deals. The 19 GWh BESS supply agreement with Masdar and the 6 GWh deal with Quinbrook in 2025 underscore CATL‘s capacity to deliver grid-scale storage at a level required for the global energy transition, confirming the widespread adoption of its technology.
Investment Analysis: Funding CATL’s Vertical Integration into Wind Energy
CATL’s investment pattern reveals a clear progression from expanding battery manufacturing to vertically integrating into the energy value chain by securing its own renewable power generation and supply chains. Early investments focused on scaling production, like the €7.34 billion plant in Hungary. This was followed by a landmark $1.83 billion commitment to an offshore wind farm to power its operations, a strategy further cemented in 2025 with investments across the battery supply chain and direct stakes in wind power companies.
Table: CATL’s Strategic Investments in Energy and Manufacturing
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Fujian Runshi Offshore Wind Power Co., Ltd. | December 2025 | Direct investment in an offshore wind power generation company that subsequently secured a project contract. This move marks CATL‘s entry into the power generation sector. | The offshore wind power market is booming… |
| CATL / Stellantis JV | November 2025 | Groundbreaking on a €4.1 billion LFP battery plant in Spain. The facility will run on renewable energy and strengthens CATL‘s European manufacturing base for BESS supply. | CATL, Stellantis break ground on battery plant in Spain |
| Indonesia Battery Integration Project | June 2025 | A nearly $6 billion investment with partners to build a project covering the entire value chain from nickel mining to battery recycling, securing the supply chain for global BESS production. | CATL and Partners Break Ground on US$6 Billion Battery … |
| Hong Kong Stock Exchange IPO | May 2025 | Raised approximately $4.6 billion to fund global expansion and R&D for energy storage batteries, directly supporting its ability to engage in large-scale wind and solar projects. | CATL stock begins trading in Hong Kong after $4.6B IPO |
| Offshore Wind Farm Construction | January 2024 | Received approval to invest $1.83 billion to construct an 800 MW offshore wind farm in Fujian, China, to generate green power for its own battery manufacturing facilities. | World’s biggest battery maker to build own $1.8bn offshore … |
| Hong Kong R&D Center | December 2023 | An investment of no less than $154 million to establish an R&D center to advance new energy technologies that support renewable integration. | HKSTP and CATL MoU for New Energy and Green Industry … |
| Hungary Battery Plant | August 2022 | A €7.34 billion investment to build a 100 GWh battery plant, with the goal of powering the facility with 100% renewable energy. | Energy news round-up: renewable energy and battery plants |
Partnership Analysis: Building Ecosystems for Wind Power Integration
CATL’s partnerships have transitioned from standard BESS supply agreements to strategic collaborations aimed at co-developing integrated energy ecosystems. Earlier partnerships focused on market access and component supply, while recent agreements in 2025 are centered on building comprehensive solutions for industrial decarbonization and grid stability, demonstrating a more sophisticated, solutions-oriented approach.
Table: CATL’s Evolving Partnership Strategy for Energy Solutions
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Sieyuan Electric | December 2025 | A three-year memorandum targeting a cumulative 50 GWh of energy storage projects, aiming to leverage both parties’ strengths to scale deployment significantly. | CATL, Sieyuan Team Up to Scale Energy Storage Deployment |
| Zenith Steel Group | March 2025 | Strategic partnership to collaborate on “Wind, Solar and Energy Storage” projects to create net-zero pathways for the steel industry. | CATL and Zenith Steel Group Forge Strategic Partnership … |
| Dongying City | March 2025 | Investment agreement to develop a zero-carbon industrial park that integrates wind, solar, and energy storage, promoting the energy transition of local industries. | CATL Collaborates with Dongying to Build Zero-Carbon … |
| Quinbrook Infrastructure Partners | March 2025 | Collaboration to launch EnerQB, a long-duration BESS solution designed for renewable projects, with an initial deployment in Australia. | Quinbrook, CATL unveil 8-hour duration BESS set for … |
| CNTE | December 2024 | Partnership to develop innovative energy storage solutions that integrate seamlessly with renewable sources like wind and solar. | CNTE & CATL HQ’s Role in Energy Storage Technology |
| Rolls-Royce Power Systems | June 2024 | Strategic agreement to bring CATL‘s new TENER BESS product line to the EU and UK markets for large, grid-scale projects. | Rolls-Royce and CATL agree strategic cooperation for … |
| POWERCHINA | August 2023 | Strategic partnership to collaborate on renewable energy development, including wind, and advancing smart energy solutions. | Top stories of CATL in 2023 – Gasgoo |
| Sungrow | September 2022 | Expanded partnership to jointly explore the global integrated PV and energy storage market, combining CATL‘s BESS with Sungrow‘s inverter technology. | CATL Partners With Leading Solar PV Inverter Firm Sungrow |
| Canadian Solar’s CSI Solar | November 2021 | Strategic partnership to cooperate on battery storage system solutions for utility-scale renewable projects. | Canadian Solar’s CSI Solar and CATL Sign Battery … |
| BASF | September 2021 | Partnership focused on creating a sustainable battery value chain to support CATL‘s localization in Europe. | BASF and CATL have signed a framework agreement to … |
CATL’s Geographic Expansion: From China-Centric to Global Grid Enabler
CATL has expanded its wind energy strategy from a primarily domestic focus in China to a global deployment model targeting high-growth renewable energy markets in Australia, Europe, and the Middle East. This geographic diversification aligns with its goal of becoming the indispensable storage partner for the global energy transition.
- Between 2021 and 2024, CATL‘s activities were heavily concentrated in China, highlighted by the $1.83 billion investment in its Fujian offshore wind farm and partnerships with domestic giants like POWERCHINA. Its European efforts, such as the €7.34 billion Hungary plant, were focused on establishing a manufacturing footprint with the stated goal of using local renewable power.
- In 2025, the strategy globalized with landmark BESS supply deals for wind and solar integration in Australia with Quinbrook and ACEnergy, and a massive 19 GWh project with Masdar in Abu Dhabi. The company also became a key supplier for the ambitious Indonesia-to-Singapore green energy corridor.
- This international push is strategically targeted at markets with high renewable energy penetration and acute grid stability challenges. The large-scale deployments in Australia and the Middle East validate CATL‘s BESS-led strategy, proving its solutions are critical for regions rapidly scaling up intermittent wind and solar power.
CATL’s Technology Status: Commercial-Scale Systems with Bankable Performance
CATL’s technology has matured from reliable BESS hardware to advanced, fully integrated energy storage systems that offer performance guarantees and disruptive cost reductions, making wind-plus-storage projects commercially bankable at scale.
- During the 2021-2024 period, the company focused on commercializing robust hardware like its award-winning EnerOne outdoor liquid-cooling BESS, designed for utility-scale applications. Its first-generation sodium-ion battery, introduced in 2021, was an early-stage technology with a roadmap for industrialization by 2023.
- By 2025, CATL‘s technology offering reached a new level of commercial maturity with the launch of the TENER system, the first mass-producible storage solution with zero degradation in its first five years. This provides project developers with the long-term performance certainty needed for wind power investments.
- The technology’s commercial validation is further confirmed by the mass production of its high-density 587 Ah cell and the launch of the Naxtra sodium-ion battery, which targets a cost of $40-$50/kWh. This combination of guaranteed performance and radical cost reduction directly addresses the primary barriers to widespread wind and storage adoption.
SWOT Analysis: CATL’s Strategic Position in the Wind Energy Market
Table: SWOT Analysis of CATL’s Wind Integration Strategy
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strength | Dominant battery manufacturing scale and established R&D capabilities, demonstrated by the introduction of sodium-ion technology in 2021. | Vertical integration via its own 800 MW offshore wind farm. Launched the TENER system with zero degradation and secured massive GWh-scale contracts like the 19 GWh deal with Masdar. | The company’s strength evolved from being a product leader to an ecosystem controller, validating its technology at an unprecedented commercial scale and securing control over its own energy inputs. |
| Weakness | Dependence on third-party energy suppliers for its own manufacturing, creating exposure to energy price volatility and carbon footprint concerns. | High capital expenditure for vertical integration, including $1.83 billion for its wind farm and $6 billion for its Indonesian supply chain project, introduces new operational risks in power generation. | CATL mitigated energy cost and supply risks by internalizing them, accepting the capital intensity and operational complexity of becoming a power producer and integrated materials company. |
| Opportunity | Growing market demand for BESS to support large-scale renewable projects, as seen with supply deals for projects like the Gemini Project in the US. | New market creation in industrial decarbonization through “zero-carbon park” solutions with partners like Zenith Steel. Expansion into turnkey grid solutions for off-grid clients. | The opportunity expanded from supplying a component (BESS) to providing a full-stack energy solution, allowing CATL to capture a much larger portion of the energy transition value chain. |
| Threat | Direct product competition from other major BESS suppliers like BYD in a rapidly growing market. | Systemic grid integration challenges and curtailment in high-penetration renewable markets. Geopolitical risks affecting global supply chains and access to key materials. | The primary threat shifted from direct competitors to broader systemic challenges in the energy transition. CATL‘s strategy of providing integrated solutions is a direct attempt to solve these systemic threats for its customers. |
2025 Forward-Looking Outlook for CATL in Wind Power
CATL is set to solidify its position as a vertically integrated energy company by commercializing its “wind, solar, and storage” model and proving the economic viability of its next-generation battery technologies at scale. The company’s focus is shifting from simply supplying batteries to actively managing and shaping the renewable energy ecosystems it enables.
- The most critical development to monitor is the commercial execution of its integrated energy solutions, particularly the zero-carbon industrial parks being developed with partners like Zenith Steel. The success of these projects will serve as a replicable blueprint for industrial decarbonization globally.
- Watch for the market adoption and real-world performance of CATL‘s Naxtra sodium-ion batteries, which are scheduled for mass production in late 2025. Achieving the target cost of $40-$50/kWh would fundamentally alter the economics of wind-plus-storage projects.
- CATL‘s direct investment in Fujian Runshi Offshore Wind Power Co., Ltd. is a key strategic signal. Any further direct investments or acquisitions in wind generation assets would confirm a permanent strategic shift from a supplier to an asset-owning energy player.
Frequently Asked Questions
How has CATL’s strategy in the renewable energy sector changed?
CATL has strategically shifted from primarily being a Battery Energy Storage System (BESS) supplier to becoming a vertically integrated energy player. This evolution involves moving beyond selling components to building its own power generation assets (like offshore wind farms) and offering comprehensive “wind, solar, and storage” solutions directly to industrial and municipal clients.
Why is CATL building its own offshore wind farm?
CATL invested $1.83 billion to construct an 800 MW offshore wind farm in Fujian, China, primarily to generate green power for its own battery manufacturing facilities. This vertical integration strategy helps the company mitigate risks associated with energy price volatility and its carbon footprint, securing a stable supply of renewable energy for its operations.
What makes CATL’s new battery technology, like the TENER system, significant for wind power projects?
The TENER system is significant because it is the first mass-producible storage solution with a guarantee of zero degradation in its first five years of use. This provides wind project developers with the long-term performance certainty and financial bankability required for large-scale investments. It addresses a key risk in pairing intermittent renewables with storage.
How has CATL’s geographic focus expanded recently?
While initially focused on its domestic market in China, CATL’s strategy globalized significantly in 2025. The company has secured landmark deals in high-growth renewable energy markets, including large-scale BESS deployments in Australia (with Quinbrook) and the Middle East (a 19 GWh project with Masdar), as well as expanding its manufacturing base in Europe.
What is the main difference between CATL’s early partnerships and its more recent ones in 2025?
CATL’s early partnerships (2021-2023) were typically standard supply agreements focused on market access and combining its BESS with a partner’s technology. In contrast, its 2025 partnerships, such as with Zenith Steel Group and Dongying City, are strategic collaborations aimed at co-developing entire integrated energy ecosystems, like zero-carbon industrial parks, to provide full-stack decarbonization solutions.
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