CATL: Building "Zero-Carbon New Infrastructure" to Co-create New Opportunities for Climate Action

Energy transition is not limited to the single dimension of electrification penetration. Recently, the chairman of CATL proposed the construction of "Zero-Carbon New Infrastructure," opening new opportunities for climate action. Addressing the broad topic of energy transition, with climate issues faced by all of humanity as the starting point, a new grand vision for zero-carbon has been outlined based on lithium battery technology. The aim of Zero-Carbon New Infrastructure is to achieve zero-carbon emissions through technological innovation and new business models, promoting infrastructure upgrades and building an efficient, intelligent, zero-carbon infrastructure system. Zeng Yuqun pointed out that Zero-Carbon New Infrastructure should have three main characteristics. First, it should be panoramic and integrated; second, sustainable; and third, a global new ecosystem.

1. Panoramic and Integrated Zero-Carbon Solutions

Currently, while 50% electrification penetration in passenger cars has become a common trend, there is still significant room for electrification penetration in segments such as heavy trucks, construction machinery, buses, logistics vehicles, forklifts, ships, and aviation. In terms of energy storage, the actual utilization rate of energy storage paired with renewable energy is low, and some energy storage projects face issues of "being built but not used," which urgently requires more comprehensive solutions. Targeting three key areas—replacing stationary fossil energy, replacing mobile fossil energy, and integrated innovation in market applications—CATL is gradually building panoramic and integrated zero-carbon solutions to address clean energy substitution on the power generation side, improving power generation efficiency, reducing energy transmission losses, enabling flexible energy allocation, energy-saving management on the consumption side, and a series of issues related to clean terminal consumption and intelligent energy management.

Currently, CATL has partnered with several companies to build demonstration projects, such as zero-carbon factories, zero-carbon industrial parks, zero-carbon transportation, zero-carbon ports, and zero-carbon communities. Recently, CATL has signed strategic cooperation agreements with Shanghai International Port Group, Shanghai Chengtou, Shandong Heavy Industry, and Beijing Xianglong, focusing on heavy trucks, construction machinery, buses, logistics vehicles, forklifts, battery recycling, charging and swapping networks, photovoltaic and energy storage integration, and battery second-life utilization, among others. These collaborations aim to strengthen the implementation of panoramic solutions in various market segments.

2. Sustainability of Zero-Carbon New Infrastructure

In terms of exploring the full lifecycle value of batteries, from "cradle" to "grave," there are still gaps in creating a sustainable ecosystem for lithium battery recycling, aging mechanism research, recycling technology, the zero-carbon value chain, and second-life utilization. Zeng Yuqun pointed out that achieving battery recycling is no easy task due to complex processes, profitability issues, and battery management difficulties. CATL has established a comprehensive battery lifecycle management system covering the upstream supply chain, battery design, production, usage, recycling, and remanufacturing, aiming to maximize recycling potential.

Within this circular ecosystem, CATL's batteries can be recycled up to 15,000 times, and its energy storage systems have a lifespan of more than 20 years. In 2023, CATL recycled 100,000 tons of used batteries, reprocessing 13,000 tons of lithium carbonate, with a lithium recovery rate of 91.0% and nickel-cobalt-manganese recovery rates of 99.6%. CATL has achieved large-scale industrialization of lithium iron phosphate battery recycling, with the capacity to handle 270,000 tons of used batteries, and plans to expand this capacity to 1 million tons. Zeng Yuqun stated that by 2042, half of the world's batteries will be produced using recycled lithium, with the other half sourced from mining.

Meanwhile, CATL's "Zero-Carbon Strategy" is progressing according to the previously disclosed timeline. Currently, nine of CATL’s battery factories have achieved zero-carbon certification, and by 2025, CATL will fully transition to zero-carbon factories. By 2035, CATL will achieve carbon neutrality across the battery value chain, meaning every CATL battery will be "carbon-neutral." Additionally, CATL is collaborating with the Global Battery Alliance (GBA) to jointly implement the "Battery Passport" pilot project, releasing the first batch of Battery Passports in January last year in Davos, Switzerland. Zeng Yuqun revealed that new standards for the Battery Passport will be released soon, stating that it will serve as the "passport" for batteries to participate in Zero-Carbon New Infrastructure.

3. Creating a Globalized Zero-Carbon Ecosystem

On September 28, the Hainan Provincial Government and CATL signed a strategic cooperation agreement in Haikou. CATL's zero-carbon cooperation with Hainan will align with Hainan's zero-carbon island master plan and local resource characteristics, starting from specific zero-carbon scenarios to promote regional decarbonization and microgrid cooperation, ultimately achieving full zero-carbonization across the island and contributing to Hainan's comprehensive zero-carbon construction, while driving coordinated zero-carbon development in surrounding cities. This is an important attempt by CATL to build a zero-carbon ecosystem on Hainan Island.

However, local zero-carbon efforts are not enough. Zeng Yuqun emphasized that imbalanced development is another major issue in energy transition. From "zero-carbon islands" and "zero-carbon cities" to "zero-carbon villages," the ultimate goal is a "zero-carbon Earth." Global cooperation is essential to achieving this, requiring openness and sharing of technology, as well as close collaboration among countries in terms of policies, industries, and markets. In March of this year, CATL proposed open innovation. In practice, CATL supports global car manufacturers and even battery companies with patent licenses, technology, and service support through its LRS model. The cooperation project with Ford, announced in February 2023, was the first attempt of CATL’s LRS model, with CATL supporting Ford's construction of a battery factory in Michigan. CATL has disclosed that the LRS model is already being replicated by multiple car and battery manufacturers in Europe and the United States.