electrify

CATL, the Chinese giant that dominates the global battery market for electric vehicles, it has become entrenched to move towards a new front: the electrification of maritime transport. It makes more sense than it seems, but it is still a great technical challenge. Although the company is not caught by surprise. Below these lines we tell you all the details. What you are already doing. The company, which controls 37% of the global market for batteries for electric cars and 22% of the energy storage market in electrical networks and data centers, has been working in the naval sector since 2017. It has so far deployed its battery systems on about 900 vessels, although mainly on small ships operating near the Chinese coast, in ports or on rivers. Its subsidiary dedicated specifically to powering ships already exists, and this year it plans to more than double the team’s staff, reaching around 500 people, according to confirmed Su Yi, the head of that division, told the Financial Times. Why now. As the media shares, the maritime sector is responsible for 3% of global carbon emissions, and the International Maritime Organization has set itself a goal halve those emissions by 2050. But there is another more recent catalyst that has made many companies reconsider: the recent escalation of war between the United States and Israel against Iran and the temporary closure of the Strait of Hormuz. The war in the Middle East has once again highlighted the fragility of energy supply chains and CATL has a good margin of maneuver there. According to counted To FT Neil Beveridge, an analyst at Bernstein specializing in energy in China, the long-term consequence of this type of situation will be an acceleration of the “global mega-migrant towards electrification.” CATL shares on the Shenzhen stock exchange have risen about 13% since the conflict with Iran broke out. The challenges. Electrifying boats is not like electrifying cars, up to this point I think we are all clear. But seriously, batteries have a much lower energy density than traditional fuels, making them impractical for long-distance ocean crossings. The middle shared the study by the Mærsk Mc-Kinney Møller Center for Zero Carbon Navigation, in which they concluded that the most promising approach in the short term is hybrid: combining electric propulsion with combustion engines. Added to this are extra risks that come from the marine environment itself: greater exposure to humidity and salinity, much more difficult evacuation conditions in the event of a fire, and the need for more demanding maintenance than in any car. Replicate the truck business model. CATL does not want to limit itself to selling batteries, as it wants to build an entire infrastructure around it, just as share in FT. It already operates in China a network of battery exchange points for trucks on highways, and now intends to take that same model to the sea. The idea is that ship operators can change their batteries in port without having to charge them, which would also eliminate that cost from the ship’s acquisition price. The company is working with municipalities and ports to develop this ecosystem from scratch; Cities like Guangzhou, one of China’s major shipbuilding centers, already offer subsidies for electric-powered vessels, according to share the middle. A personal story. There is a rather curious detail in all this. And just as account FT, Robin Zeng, founder of CATL, studied marine engineering at university before switching to electronics. “Naval engineering was his original discipline and passion,” Su Yi explained to the outlet. It has its advantages, because over time this discipline could end up becoming the next great industrial transformation of your company. Financial muscle. CATL closed 2025 with a net profit of 72.2 billion yuan (about 10.4 billion dollars), 42% more than the previous year, driven mainly by demand for energy storage. From this position of financial strength, the company has the muscle to invest long-term in a sector where margins are still uncertain. We’ll see how the company ends up doing. Cover image | Wikipedia and Elias In Xataka | In 2022, Europe forced energy companies to swallow the cost of the gas crisis. Now she’s willing to do the same.