(Yicai) April 15 -- Contemporary Amperex Technology, the world's largest maker of electric vehicle batteries, reported a 33 percent jump in profit for the first quarter and said the impact of higher US tariffs will be minimal as the American market accounts for only a small part of its business.

Net profit was CNY14 billion (USD1.9 billion) in the three months ended March 31, the Chinese company’s financial report showed yesterday. Revenue rose 6.2 percent to CNY84.7 billion from a year earlier, while gross profit margin was 24.4 percent.

The United States accounts for only a small share of CATL's shipments, the Ningde-based company said on an earnings conference call the same day, adding that since last year it has implemented contingency plans in response to evolving conditions, limiting the impact of tariff policies on its performance. The firm is also working with clients to develop effective solutions, it said.

CATL used its full production capacity last quarter, with strong production and sales since the beginning of this year, and anticipates sustained expansion ahead, the company said.

Shares of CATL [SHE: 300750] closed 1.9 percent higher at CNY228.15 (USD31.52) each in Shenzhen today. The stock is down just over 14 percent since the end of last year.

On the international front, the company pointed to rapid growth in energy storage demand across emerging markets such as the Middle East and Australia. Energy storage demand is strong, driven by renewable energy and artificial intelligence data centers, which also require higher standards for such batteries. CATL has secured several large energy storage projects in the Middle East, Australia, and other markets, it added.

According to a report by Sealand Securities last month, there is a possibility of "rush installations" for certain energy storage projects in the United States until the middle of this year.

Demand in the domestic and overseas markets is robust, with production capacity operating near full utilization, CATL said.

CATL's global EV battery market share topped 38 percent in the first two months of this year, according to figures released by market research firm SNE Research. The figure for Europe jumped to 43 percent from 35 percent a year ago, leading its closest competitor by 13 percentage points.

CATL has been making strides in the US since 2018, establishing a sales and service center in Detroit. In addition, it opted to partner with Ford Motor by licensing its lithium iron phosphate battery technology rather than pursuing direct equity investments in local manufacturing plants. 

Ford is building a USD3.5 billion battery factory in Michigan, the first in the US with LFP technology licensed from CATL. Tesla also continues to use CATL batteries in its Shanghai-made electric vehicles, which are exported to North America and Europe.

Editor: Martin Kadiev