Chinese battery giant Contemporary Amperex Technology Co. (CATL) is facing community resistance to its overseas expansion plans, raising potential risks for its ambitious growth strategy. The company's planned battery factory, nearing completion, has triggered concerns among local residents about potential environmental and health hazards.

The project, while touted for its contribution to the clean energy transition, is drawing scrutiny due to the potential for chemical leaks, water depletion, and high energy consumption. Residents voiced concerns about the proximity of the factory to residential areas and schools, fearing a repeat of industrial pollution seen in the past.

CATL's expansion is occurring amidst a global race to secure battery supply chains, crucial for the electric vehicle market. The company, a dominant player in the lithium-ion battery sector, is investing heavily in overseas manufacturing to meet growing demand from automakers in Europe and North America. This expansion is critical for CATL to maintain its market share, estimated to be around 34% globally, and capitalize on the projected exponential growth of the EV market.

CATL's financial performance has been strong, with revenues reaching billions of dollars annually. However, the company's profitability could be affected if it faces significant delays or increased costs due to community opposition or stricter environmental regulations. The company's stock price could also be impacted by negative publicity surrounding its environmental and social impact.

The situation highlights the challenges faced by companies seeking to expand into new markets while adhering to environmental and social responsibility standards. CATL will need to address community concerns effectively to mitigate risks to its reputation and financial performance. The outcome of this situation could set a precedent for other Chinese companies investing in clean energy projects abroad, potentially influencing the future of global clean energy supply chains.