CATL’s Dual Bet: A Nordic Storage Pact and a Radical Revenue Overhaul

China's CATL signs 3 GWh storage deal with Merus Power, aiming for half of revenue from stationary storage by 2030 as it pivots beyond EV batteries.

The world’s largest battery maker is charting two parallel courses. On one hand, a freshly inked deal with Finnish group Merus Power brings 3 gigawatt-hours of stationary storage to northern Europe. On the other, a sweeping strategic target unveiled at a Shanghai trade fair envisions half of all revenue flowing from energy storage by the end of the decade. Together, they signal that Contemporary Amperex Technology is no longer content to be merely the king of electric-vehicle batteries.

From 2% to 50% in a Decade

Kevin Tang, CATL’s director for energy storage systems in Europe, used the Shanghai event to lay out an ambition that would redraw the company’s identity. Storage currently accounts for roughly a quarter of group sales — a share that has rocketed from just 2% five years ago. If the new target is met, the battery division that today supplies around 75% of revenue will shrink to co-equal status with stationary storage by 2030.

To back that pivot, CATL is ploughing roughly 3 billion yuan into a dedicated testing centre for grid simulations and safety analysis. European expansion is already taking shape with sites in Germany, Hungary and Spain. The company’s grip on the auto-battery market remains formidable: its global share hit 40.1% in the first third of 2026.

The Finnish Connection

The Merus Power agreement, announced on 3 June, illustrates how CATL intends to deploy that ambition on the ground. Over the past three years Merus had already delivered about 500 MWh of battery storage based on CATL technology in the Nordic region. The new pact scales that volume sixfold. Merus will integrate CATL’s cells with its own power electronics, grid inverters and Finnish-developed control and protection systems.

Neither side disclosed financial terms, delivery schedules or the potential revenue impact for CATL. That uncertainty limited the immediate market reaction, even as the deal reinforced the narrative that the company is moving beyond the EV supply chain into utility-scale infrastructure. Under Nordic conditions — harsh weather, strict grid codes and cybersecurity requirements — such projects demand a different mix of engineering and reliability than automotive batteries.

Stock Rally Hits a Speed Bump

The share price had been on a tear. On Tuesday, the day of the Merus announcement, the stock touched a 52-week high of €86.94. By Thursday the air came out. One source put the close at €79.45, roughly 8.6% below that peak; another recorded a deeper slide of 7.59% to €80.19. The discrepancy may reflect different trading sessions or data feeds, but the direction is clear: profit-taking after a 131.76% gain over the past twelve months.

Analysts added to the pressure. BNP Paribas downgraded Hong Kong-listed CATL shares from “Outperform” to “Neutral,” citing an excessive premium over mainland A-shares. Meanwhile, JPMorgan flagged persistent pricing pressure in the lithium sector, weighing on sentiment across the battery complex.

What Comes Next

The stock now trades well above its 200-day moving average of €61.11, suggesting much of the recovery and growth story is already priced in. The Merus Power agreement supports the strategic thesis around European energy storage, but investors will need hard numbers — confirmed orders, disclosed contract values and delivery milestones — to decide whether stationary storage can deliver the same margins as the EV business. The next quarterly reports will provide the first real test.

For a company that logged a 130% stock gain in a year and still aims to reshape its revenue mix completely within four years, the market is asking for proof that the transformation is as profitable as it is ambitious.