CATL has officially reached carbon neutrality in its core operations as of the end of 2025, making it the only battery manufacturer globally to do so at a TWh-level shipment scale. The company is now targeting full value chain carbon neutrality by 2035, a move that comes as international regulations tighten and market expectations shift.
CATL’s Zero-Carbon Milestone
At the Core Operational Carbon Neutrality event, CATL announced it has achieved carbon neutrality across its core operations. By the end of 2025, all core operations were powered by 100% zero-carbon electricity, and 20 of its battery factories received ISO 14068-1 certification as zero-carbon facilities.
In 2025, CATL produced 748 GWh of batteries, and from 2022 to 2025, its lithium-ion battery sales grew by 2.3 times. The company’s cumulative use of zero-carbon electricity since 2023 has surpassed 18 billion kWh (~11.2 billion miles of EV driving), while unit energy consumption at its production bases dropped by 28% compared to 2022. Over the past two years, CATL’s carbon emission intensity fell by approximately 77%, resulting in a cumulative carbon reduction of more than 10 million tons.
Pathway to Value Chain Carbon Neutrality
CATL’s next goal is to achieve carbon neutrality across its entire value chain by 2035. More than 80% of the carbon emissions associated with CATL products originate from the supply chain, which produces over five times the emissions of the company’s own operations.
To address this, CATL has developed a full-link carbon data traceability platform for the lithium battery industry, covering everything from mineral mining to component manufacturing. This platform has already completed carbon data accounting for over 100 core Tier-1 suppliers. The company’s 2035 roadmap focuses on raw material R&D, production, logistics, and recycling. CATL will also release a Green Procurement Guide, making carbon footprints and renewable energy use key criteria for supplier selection.
Regulatory Drivers and Global Context
CATL’s push for value chain carbon neutrality is influenced by new international regulations, particularly the European Union’s Regulation Concerning Batteries and Waste Batteries. Between 2027 and 2028, the EU will require strict carbon footprint limits for batteries entering its market, with detailed disclosures across four life-cycle stages. China’s Ministry of Industry and Information Technology has also announced a pilot program requiring battery makers to report product carbon footprints starting in 2026.
With transition periods for compliance lasting just 18 months, these rules make carbon neutrality a requirement for market access rather than a voluntary goal. CATL’s leadership has stated that compliance is the baseline for international expansion, but the company aims to go beyond this by helping shape global carbon standards.
Competitor Comparison
CATL holds a dominant position in the global battery market, with a 50.1% share of China’s EV battery production in Q1 2026 and a 39.9% global share in the first half of 2026, according to SNE Research. This places CATL ahead of other major battery manufacturers, who have not yet achieved similar levels of operational carbon neutrality or market share.
Why this matters
CATL’s achievement sets a new benchmark for sustainability in the battery industry, especially as regulatory requirements become more stringent in key markets like the EU and China. With over 80% of product lifecycle emissions coming from the supply chain, CATL’s focus on value chain carbon neutrality could have a significant impact on the overall environmental footprint of electric vehicles worldwide.
As the world’s leading battery supplier, CATL’s actions are likely to influence industry standards and expectations, potentially accelerating the adoption of zero-carbon practices across the sector.
What this means for buyers
For automakers and consumers, CATL’s progress means that EVs using its batteries may soon offer lower lifecycle emissions, helping meet regulatory requirements in Europe and beyond. Buyers should look for vehicles equipped with batteries from suppliers committed to transparent carbon reporting and zero-carbon manufacturing, as these will be better positioned for future compliance and sustainability goals.
Key Specs
- Core operational carbon neutrality achieved: End of 2025
- Zero-carbon electricity in core operations: 100%
- ISO 14068-1 certified zero-carbon factories: 20
- Battery production in 2025: 748 GWh
- Cumulative zero-carbon electricity usage since 2023: Over 18 billion kWh (~11.2 billion miles of EV driving)
- Reduction in unit energy consumption (vs 2022): 28%
- Reduction in carbon emission intensity (over two years): 77%
- Global lithium power battery market share (H1 2026): 39.9%
Source
Images sourced from: nytimes.com
