I've stayed positive on Contemporary Amperex Technology Co., Limited (CYATY) (CTATF) (3750.HK), also known as "CATL."

Events in the current month send me a clear message about CYATY's untapped potential. My view of its supply chain integration, diversification beyond lithium-ion batteries, and overseas growth is constructive.

My March 10, 2026, initiation piece highlighted the firm's above-expectations 4Q25 bottom line and promising FY26 outlook.

Investment in Data Center Operator Deepens Supply Chain Integration

SA News reported in late May that "CATL bought a 38% stake in VNET" Group (VNET).

The investee is "an industry-leading player known for [their] high-performance data centers/DCs" based on its analyst call disclosures.

My view of the company's latest move is favorable, as outlined below.

CYATY's "Energy Storage System/ESS batteries" business boasted a mid-30% worldwide market share, according to my Mar '26 write-up. This is complemented by VNET's substantial 0.9 GW DC capacity as of the end of 2025. It's reasonable to think that the former has secured its future demand by acquiring a minority interest in the latter.

I also like how it has become vertically entrenched across the sector now.

According to Chinese media Yicai Global, CYATY spent $0.6B to own 49% of the shares in a "supplier of data center power systems" called Zhongheng last month. I anticipate that it will be able to market a full suite of DC solutions involving infrastructure, cells, and sites following the VNET/Zhongheng transactions.

New Contract Marks A Critical Milestone

CYATY issued a press release in early May revealing the inking of "the largest sodium-ion battery supply agreement in the world." I perceive this to be an inflection point for the scaling-up of this segment's commercial operations.

The company has targeted "mass production of sodium-ion batteries" within the current year, as per S&P Global. The fresh 3-year, 60 GWh