June 16, 2024

Tesla and US Automakers Court CATL’s Battery Technology amid Slowing Sales of Electric Vehicles

2 min read
CATL, a Tesla supplier, experiences an increase in stock value after reports of licensing advanced battery technology

Contemporary Amperex Technology Co Ltd (CATL) shares surged on Tuesday following reports that the company is in talks with Tesla Inc and other U.S. automakers to license its battery technology rather than build a plant in the U.S. CATL, a major battery supplier for Tesla, has decided to abandon its plans to build a battery plant in the U.S. and instead intends to offer its technology through licensing agreements to American manufacturers.

The decision to shift towards technology licensing comes at a time when the North American electric vehicle sales are on a downward trend until 2023. This slowdown in sales has impacted the earnings of key players in the industry, especially Tesla, leading to a negative outlook for production in 2024. Despite these challenges, CATL remains committed to expanding its production, focusing on more advanced products and faster battery charging solutions.

According to reports from The Wall Street Journal and Bloomberg, CATL is discussing licensing its battery technology to Tesla and other U.S. automakers. The company is also collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s Nevada factory. CATL’s founder and Chairman, Robin Zeng, stated in an interview with Bloomberg that the company has no intentions of reducing its production pace and plans to increase the output of its innovative products. Zeng also mentioned that CATL has made significant progress in improving battery charge times and is actively working on making the charging process even quicker.

In recent years, CATL has been one of China’s most successful companies, with revenue increasing by more than 18% last year alone. The stock price of CATL in Shenzhen rose nearly 3% on Tuesday following news of the licensing talks

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