CATL has reached its 2025 carbon neutrality target for core operations, with all 20 of its battery manufacturing plants certified as carbon neutral. The Chinese battery giant has now set its sights on a bigger goal: achieving carbon neutrality across its entire value chain by 2035.
The milestone marks a significant shift in how CATL approaches decarbonization, with the company positioning lower-carbon battery production as an important part of its long-term growth strategy.
At an event in Ningde, China, CATL also called on suppliers and other industry partners to accelerate emissions reductions throughout the global battery supply chain.
CATL Reaches 2025 Carbon Neutrality Target
CATL has been working toward lower-carbon battery manufacturing since opening its first battery factory in 2012. The company says its carbon-neutrality strategy is built around detailed emissions data covering manufacturing operations and key suppliers.
In 2022, CATL developed its own Carbon Chain Management System (CCMS) to monitor and calculate emissions across factories and production lines. The system now includes more than 1,000 models covering products and raw materials.
According to CATL, zero-carbon electricity accounted for 100% of electricity consumption across its core operations in 2025. The company has consumed more than 18 billion kWh of zero-carbon electricity cumulatively since 2023.
Energy consumption per unit of production at CATL’s battery manufacturing bases has fallen 28% compared with 2022, while carbon emissions intensity has dropped by approximately 77%.
Between 2023 and 2025, CATL says its efforts resulted in more than 10 million metric tons of CO₂-equivalent emissions reductions.
The company views the achievement as more than a corporate sustainability milestone. It could also provide a blueprint for reducing the environmental impact of large-scale lithium-ion battery manufacturing.
Supply Chain Becomes CATL’s Next Focus
Reaching carbon neutrality at its own factories is only part of the challenge.
CATL estimates that more than 80% of the carbon emissions associated with its products come from the supply chain. Total value-chain emissions are more than five times higher than emissions generated by its core operations.
That makes suppliers, raw-material production, transportation and battery recycling critical to CATL’s 2035 carbon-neutrality target.
The company has already established baseline carbon data for more than 100 major Tier 1 suppliers and plans to expand carbon-data coverage across key upstream operations.
CATL’s strategy centers on four areas: material and process innovation, cleaner manufacturing, green logistics and battery recycling.
The company is working on lower-carbon materials and manufacturing processes while expanding the use of renewable electricity in upstream production. CATL is targeting 100% green electricity across its value chain by 2035.
The company is also promoting zero-carbon logistics and plans to expand its global battery recycling network through Brunp Recycling.
New Rules for CATL Suppliers
CATL plans to introduce new Green Procurement Guidelines that will make carbon reporting a more important part of its supplier relationships.
Starting in 2027, suppliers will be required to provide product carbon footprint data. Renewable electricity usage and energy efficiency will also become part of annual supplier evaluations.
Suppliers with stronger emissions performance could receive preferential treatment when CATL allocates orders, along with potential support through longer-term agreements.
CATL is also launching a Zero-Carbon Supply Chain Empowerment Initiative, initially involving 30 major suppliers in joint emissions-reduction projects.
The move could have an impact well beyond CATL itself. As one of the world’s largest EV battery manufacturers, its procurement requirements can push battery-material suppliers and other companies throughout the supply chain toward more detailed carbon accounting and cleaner production.
What CATL’s Carbon-Neutrality Push Means for EVs
Battery production is one of the most important environmental considerations in the electric vehicle industry. EVs produce no tailpipe emissions while driving, but manufacturing batteries requires significant amounts of energy and raw materials.
Reducing the carbon footprint of battery production can therefore improve the overall environmental benefits of electric vehicles.
CATL’s strategy also reflects a broader trend in the EV industry: attention is increasingly moving beyond vehicle tailpipe emissions toward the complete lifecycle of an electric car.
Cleaner electricity, lower-carbon battery materials, more efficient manufacturing, greener transportation and battery recycling could all play a role in reducing the lifecycle emissions of future EVs.
CATL says its next objective is to work with global partners to accelerate this transition. The company expects zero-carbon batteries to become increasingly important as governments and automakers pursue stricter emissions targets.
For the electric vehicle industry, the shift could ultimately make the carbon footprint of the battery itself an increasingly important factor alongside range, charging speed, performance and price.
CATL’s 2035 Goal
CATL has now completed its first major carbon-neutrality commitment by achieving carbon neutrality across its core operations. Its next challenge will be considerably larger.
Reaching full value-chain carbon neutrality by 2035 will require changes throughout the battery ecosystem, from raw-material extraction and processing to manufacturing, logistics and end-of-life recycling.
If CATL can deliver on that target, the world’s largest battery manufacturers could help establish new standards for lower-carbon battery production—and potentially reduce the overall environmental footprint of the rapidly expanding global EV market.
