On Tuesday, China’s CATL shares rose amid reports of discussions with Tesla and other US carmakers to adopt its battery technology instead of building a plant in the US.
Contemporary Amperes Technology Co Ltd (CATL) shares rose by 3.90% to CN¥192.00 ($26.60) apiece in the Asian afternoon trading session and were closed to a four-and-a-half-month high.
Moreover, the firm has significantly surpassed a subdued performance in the blue-chip Shanghai Shenzhen CSI 300 index.
Meanwhile, the initiation coincides with a slowdown in North American electric vehicle (EV) sales projected until 2023, impacting earnings for vital producers like Tesla and casting a shadow over 2024 production prospects.
According to reports, the China-based firm has been in talks to license its battery technology to Tesla and other US carmakers. CATL is also to partner with the Texas-based EV giant over fast-charging cells while supplying machinery to the automaker’s Nevada factory.
Meanwhile, one of the significant battery suppliers for Tesla reportedly has abandoned its US battery plant plans and intends to license its technology to American manufacturers.
CATL presently holds a licensing agreement with Ford Motor Company to manufacture batteries at a Michigan facility. However, the US automaker has recently scaled down the plant’s scope and its EV ambitions due to declining sales.
Ford Reduces CATL Michigan Battery Plant Investment
In November, Ford announced plans to reduce investment in its Michigan battery plant, opting to produce cost-effective lithium-iron batteries licensed from CATL due to opposition from US lawmakers.
According to reports, CATL’s decision coincides with a global decline in EV demand and increased oversight by US regulators aiming to restrict Chinese-produced minerals and batteries from receiving electric vehicle tax credits.
Meanwhile, CATL’s founder and Chairman, Robin Zeng, said that the company has no intentions of reducing production. Instead, he aims to boost the output of its advanced products.
Zeng also mentioned solutions for faster battery charging and ongoing efforts to expedite the process.
Furthermore, the China-based firm is developing faster-charging batteries for Tesla and providing equipment to Elon Musk’s Nevada factory.
CATL CEO has stated earlier that they are considering establishing research and development centers in Hong Kong to innovate technologies for international licensing amidst declining domestic EV demand.
