The Smartest EV Batteries May Not Be the Best Ones

The hype around electric vehicles has raised expectations for the next generation of long-lasting batteries that take cars farther — all at the right price. But new advances and big breakthroughs may not be the way forward. The success of one of the world’s largest EV battery companies, China’s Contemporary Amperex Technology Ltd., or CATL, is a case in point.

CATL has managed to bring down battery prices by using older technology, and has convinced automakers that the end product is a worthwhile investment — no easy task. But in so doing, CATL has maintained gross profit margins at more than 25% each quarter for the past few years. The China-listed company’s share price has risen almost 60% so far this year.