As the world transitions to more renewable energy, accelerated by geopolitical fault lines exposed by the closure of the Strait of Hormuz earlier this year, we believe energy storage will become as critical as oil and gas reserves. As oil majors did at the dawn of the petroleum age, CATL has emerged as a dominant supplier of a key energy input. With nearly 40% share of the global battery market,¹ CATL is already the world’s largest battery supplier.

In our opinion, CATL’s current position as a major energy player on the rise is analogous to that of many US oil majors' early days in terms of scale, technological moat, access to raw materials, and value trajectory.

Scale

CATL already controls between 34% and 38% of the global electric vehicle battery market.¹ Despite being based in China, CATL has achieved a truly global reach, supplying carmakers including Tesla, BMW,¹ Ford,² and Mercedes-Benz.¹ This mirrors the pattern of major US oil companies, such as Chevron and Exxon Mobil, establishing partnerships and refining assets in global markets.

CATL is also moving beyond just vehicle batteries to providing energy storage systems for electrical utilities around the world, greatly increasing its potential scale. This is reminiscent of when John D. Rockefeller's Standard Oil moved from mainly providing kerosene for lamps and stoves to providing oil to heat entire homes.

Average annual electricity consumption worldwide is expected to triple as a resut of AI use cases. The only recent comparable event was the widespread adoption of air conditioning, but that only doubled electricity consumption, according to estimates.

CATL is already well-positioned to help support this massive potential strain on global electrical grids. The company is beginning to provide highly-efficient, large-scale energy storage systems to public utilities in China for use in reducing grid load during peak periods.⁹ It has also begun to supply such grid-oriented storage systems to local autmaker Ford for use with US utility companies.⁸

Technological Moat

CATL has proven capable of continued innovation in battery technology. In 2024, it was the first to commercialize a vehicle battery that, according to marketing, could charge nearly 250 miles of range in 10 minutes.⁴ In April, CATL announced a key breakthrough in sodium-ion battery technology that promises to lower costs over traditional lithium-based batteries, improve performance at lower temperatures, and further speed up charging times.⁷ Achieving such efficiency makes CATL an exceedingly attractive partner for global automakers looking to reduce potential buyers’ range anxiety. We believe this technological moat has enabled CATL to steadily increase its margins over the past three years, despite chronic vehicle oversupply in its home market, China.

This mirrors the pattern of Exxon and other American oil companies essentially selling their refining and extraction expertise to less advanced firms, as Exxon’s predecessor did with Saudi Aramco in 1948.⁵

Access to Raw Inputs

Batteries require unique inputs, including lithium, cobalt, and other rare-earth elements (REEs). CATL benefits from its base in China, which has considerably better access to REEs compared to many other major economies.⁶ Moreover, CATL is now seeking to vertically integrate with the purchase of crucial mining assets. Similarly, during their rise, US oil majors often benefited from their proximity to plentiful underground oil in West Texas.

Value Trajectory

CATL’s market capitalization has surged over 600% in the past five years to reach a level that is on par with many of the world’s largest oil companies.

CATL's value may still increase as it expands the scope of its energy storage technoplogy to include use in electrical grids. Ford's attempt to leverage battery plants in Michigan and Kentucky that already use CATL's technology to supply energy storage solutions for electrical grids,⁸ if successful, may encourage other carmakers around the world to do the same, leading to increased revenues for CATL. Meanwhile, the increased use of weather-dependent renewables, such as wind and solar energy, may also drive increased demand for energy storage. Similarly, new markets for automobiles, plastics, and modern heating and cooling technology have contributed significantly to oil companies' revenue growth in recent decades.

How to Invest

CATL is only listed on the Hong Kong and Shanghai Stock Exchanges, which makes it somewhat challenging for Americans to own outright. One way to invest in CATL is through ETFs. The following KraneShares ETFs currently have CATL as a top ten holding:

• The KraneShares MSCI China Clean Technology Index ETF (Ticker: KGRN) at a 7.10% Weight as of April 22, 2026.
• The KraneShares Electric Vehicles & Future Mobility Index ETF (Ticker: KARS) at a 4.45% Weight as of April 22, 2026.

KGRN also provides access to various renewable energy themes in China, including electric vehicles, wind power, solar power, hydropower, and nuclear power.

KARS also provides access to opportunities within the global electric vehicle and future mobility ecosystem.

For KARS top ten holdings, risks, and other Fund information, please click here.

For KGRN top ten holdings, risks, and other Fund information, please click here.

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KGRN Top 10 Holdings as of 03/31/2026 (excluding cash; holdings are subject to change)

Holding	Ticker	%
BYD CO LTD-H	1211	9.01
LI AUTO INC-CLASS A	2015	8.60
XPENG INC - CLASS A SHARES	9868	8.44
CONTEMPORARY AMPEREX TECHN-A	300750	6.75
NIO INC-CLASS A	9866	4.84
CGN POWER CO LTD-H	1816	4.78
CHINA YANGTZE POWER CO LTD-A	600900	4.68
GDS HOLDINGS LTD-CL A	9698	3.86
CONTEMPORARY AMPEREX TECHN-H	3750	3.56
ZHEJIANG LEAPMOTOR TECHNOL-H	9863	3.15

Top 10 Holdings as of 03/31/2026 (excluding cash; holdings are subject to change)

Holding	Ticker	%
BYD CO LTD -A	002594	4.95
ALBEMARLE CORP	ALB	4.41
CONTEMPORARY AMPEREX TECHN-A	300750	4.39
Panasonic Holdings Corporation	6752	4.17
STMICROELECTRONICS NV	STM.PA	3.88
TESLA INC	TSLA	3.82
XIAOMI CORP-CLASS B	1810	3.66
BAYERISCHE MOTOREN WERKE AG	BMW	3.45
GEELY AUTOMOBILE HOLDINGS LT	0175	3.18
NIO INC-CLASS A	9866	2.93

Citations:

1. Cole, Craig. “CATL Is The Undisputed Global Battery Leader… For Now,” Top Speed. April 19, 2025.
2. Contemporary Amperex Technology Co., Limited. “CATL and Ford Announce Global Strategic Cooperation to Promote EVs Worldwide” CATL. July 21, 2022.
3. “CATL and Stellantis Break Ground on Spain’s Largest EV Battery Plant,” Euronews. 27 November 27, 2025.
4. CATL Advertising. Viewed in June, 2024.
5. Aramco Americas. Our History. Accessed on April 17, 2026.
6. US Geological Survey (USGS) as of 12/31/2025.
7. Johnson, Peter. "CATL is launching sodium-ion batteries in EVs in 2026, aiming for 370+ miles range," electrek. April 22, 2026.
8. "Ford's Energy Storage Ambition: $2 Billion to Expand Annual Capacity to Over 20 GWh," December 17, 2025. Energy Trend.
9. CATL: Energy Storage Systems. Accessed on April 28, 2026.