Chinese Energy Storage Giant CATL Escalates Patent Feud with Rival Hithium as Executive Detained
Key Insights
Police have detained a Hithium Energy Storage Technology executive, Feng Dengke, for suspected infringement of business secrets, following a report by rival Contemporary Amperex Technology (CATL).
The detention marks an escalation in the ongoing intellectual property dispute between CATL, the world's largest battery producer, and Hithium, a rapidly growing energy storage firm.
Hithium, founded by a former CATL technical team member, is facing multiple lawsuits from CATL, including claims of unfair competition seeking over CNY100 million.
This legal battle highlights the intense competition and intellectual property challenges within China's booming energy storage and electric vehicle battery market.
Police in Ningde have detained Feng Dengke, an executive from Hithium Energy Storage Technology, for investigation into suspected infringement of business secrets, escalating an ongoing patent dispute with rival Contemporary Amperex Technology (CATL). The detention follows a report filed by CATL, the world's largest provider of energy storage and electric vehicle batteries, according to sources close to the company who confirmed that evidence has been collected.
Hithium confirmed Feng's detention, clarifying that he no longer works at the company's headquarters. He currently serves as the general manager of Hithium Green Energy Development, a subsidiary, where his responsibilities are focused on business development rather than technology research and development.
The genesis of Hithium in 2019 by Wu Zuyu, a former core member of CATL’s technical team, has fueled much of the contention. Hithium, which applied for an initial public offering on the Hong Kong Stock Exchange in March, has been embroiled in legal battles with CATL since 2023. The dispute began with CATL suing Wu for violating a non-compete agreement, resulting in a court order for him to pay CATL CNY1 million (USD139,300) in compensation.
In June, CATL initiated another lawsuit against Hithium, alleging unfair competition and seeking damages exceeding CNY100 million (USD13.9 million). This case is scheduled for trial on August 12. CATL has a history of engaging in patent disputes with various competitors in the highly competitive Chinese battery market, including Tafel New Energy Technology, Calb Group, and Svolt Energy Technology.
Hithium has rapidly ascended in the energy storage sector, reporting shipments of 35.1 gigawatt-hours last year. This volume secured the company the third global ranking with an 11 percent market share, as detailed in its listing prospectus. Chinese peers CATL and Eve Energy held the first and second positions, respectively. Financially, Hithium achieved a net profit of CNY287.6 million last year, a significant turnaround from a net loss of CNY2 billion (USD278.6 million) in the preceding year, with revenue increasing by 27 percent to CNY12.9 billion (USD1.8 billion) over the same period.