- The move by CATL is a rare step amid sluggish economic growth in China where layoffs have become commonplace.
- CATL had 131,988 employees at the end of 2024, including 96,725 frontline production workers.
CATL (HKG: 3750, SHE: 300750) is raising wages for a large number of production workers, sending a positive signal to China’s electric vehicle (EV) supply chain job market amid widespread concerns over job security.
The Chinese battery giant will increase the monthly base salary of employees at job grades JG1-6 by RMB 150 ($21), effective January 1, 2026, according to a memo circulating on Chinese social media yesterday.
JG1-6 employees primarily include assembly line workers, junior technicians, and support staff.
The initiative aims to attract and retain talent, enhance operational efficiency and product quality, and strengthen the company’s competitiveness, CATL said in the memo.
CATL’s move stands out as a rare gesture amid China’s weak economic growth and layoffs becoming commonplace, quickly sparking widespread discussion and trending online.
Robin Zeng, the battery maker’s founder, chairman, and CEO, later confirmed the plan to local media, stating it was true.
The memo did not specify how many employees would benefit from the raise. CATL’s 2024 annual report indicates it had 131,988 employees as of year-end 2024, including 96,725 frontline production workers.
Additionally, CATL launched an incentive program encouraging employees to work during the 2026 Chinese New Year holiday period.
From February 9 to February 28, 2026, eligible employees meeting attendance requirements will receive an additional bonus of at least RMB 3,200. The 2026 Chinese New Year holiday falls between February 15 and 23.
Taking a JG2-level production worker as an example, if they work 25 days in February, their monthly income would be RMB 11,500, including a base salary of RMB 8,300, noted local media outlet Cailian in a report yesterday.
This move is rare in recent years, as companies have frequently laid off employees amid a weak economic performance following the impacts of Covid-19 and global trade frictions.
China will strengthen capacity monitoring in the battery sector and intensify oversight of production consistency and product quality.
($1 = RMB 7.0746)
