China’s CATL licenses battery technology to US automakers as sales falter but plans continue to expand and innovate

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

Tesla and other U.S. automakers are in talks with China’s Contemporary Amperex Technology Co Ltd (CATL) to license its battery technology, according to reports from The Wall Street Journal and Bloomberg. CATL, a major supplier for Tesla, has decided to abandon plans to build a battery plant in the U.S. instead opting to offer its technology through licensing agreements to American manufacturers.

Despite a downward trend in North American electric vehicle sales until 2023, CATL remains committed to expanding production and focusing on more advanced products and faster battery charging solutions. Robin Zeng, founder and Chairman of CATL, 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.

The stock price of CATL in Shenzhen rose nearly 3% on Tuesday following news of the licensing talks, significantly outperforming the blue-chip index. While some may see this as a sign that demand for electric vehicles is waning, others view it as an opportunity for companies like Tesla to improve their technology and potentially increase sales in the future.

Leave a Reply