In a recent podcast appearance with Nicolai Tangen, CEO of Norges Bank Investment Management, CATL CEO Zeng Yuqun shared insights into the battery industry, emphasizing China’s leadership in battery technology and criticizing European battery manufacturers for their flawed processes.
Zeng attributes CATL’s success to its innovation capabilities, stating that he does not worry about imitators. He pointed out that China’s dominance in battery technology is partly due to the country’s emphasis on electrochemical research within higher education, with more than 50 graduate programs focused on battery research compared to just a few in the United States.
During the conversation, Tangen highlighted that two-thirds of the world’s most cited papers on battery technology originate from China, while only 12% come from the U.S. He questioned how other countries could compete against China in this field. Zeng responded by recalling a discussion with former German Chancellor Angela Merkel during her visit to China. Merkel had questioned why Germany, with its history of manufacturing top-tier engines and gearboxes, could not produce high-quality batteries.
Zeng explained that in China, many universities continue to focus on electrochemistry, despite it being perceived as a low-status field where graduates often struggle to find good jobs. In contrast, top students in the U.S. and Europe are more drawn to finance or semiconductor fields, where salaries are higher. This academic focus has allowed China to cultivate a large pool of talent in electrochemistry, giving it an advantage over countries like Germany.
Zeng further criticized European battery manufacturers, arguing that their design, processes, and equipment are fundamentally flawed. He noted that if these manufacturers attempt to scale up, they will encounter utilization issues, followed by reliability and safety problems within two to three years. He stressed that European manufacturers often fail to consider long-term risks because they lack a deep understanding of electrochemistry and the secondary reactions within batteries.
Zeng elaborated, “That’s why the performance tests look good in the short term, but when scaling up, they prioritize process optimization without accounting for future demands.” According to him, this shortsightedness has led to compounding errors that hinder European battery makers from producing reliable products.
The CATL CEO made it clear that his company’s primary competitor is itself, and he does not see other battery manufacturers as serious rivals. He emphasized that CATL welcomes more players in the industry because innovation-driven competition fosters healthy development. Zeng argued that mere imitation cannot satisfy consumers or drive technological advancements; only creativity can propel the industry forward.
Additionally, Zeng highlighted CATL’s massive talent pool, consisting of 21,000 engineers, including hundreds of PhDs and numerous master’s degree holders, many of whom have been with the company for over three to five years. This strong base of skilled professionals allows CATL to continue innovating and leading in the battery sector.
Zeng concluded by expressing confidence in China’s continued leadership in battery technology, attributing it to a combination of strong educational focus, a deep talent pool, and a commitment to innovation. He underscored the importance of creative competition in driving the industry’s future growth, rather than fearing imitation from competitors.
