China’s Contemporary Amperex Technology Co Ltd (CATL) has announced that it 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. The news sent shares of CATL surging on Tuesday, with the stock price in Shenzhen rising nearly 3% and reaching a 4-½ month high.
According to reports from The Wall Street Journal and Bloomberg, CATL is discussing licensing its battery technology to Tesla and other U.S. automakers, as well as collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s Nevada factory. This shift towards technology licensing comes at a time when North American electric vehicle sales are on a downward trend until 2023, impacting key players in the industry like Tesla, leading to a negative outlook for production in 2024.
Despite these challenges, CATL remains committed to expanding its production and focusing on more advanced products and faster battery charging solutions. 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.
