Contemporary Amperex Technology Co. Ltd., or CATL, the world’s largest battery manufacturer, has announced a collaboration with Tesla to develop new battery technologies. This partnership could result in faster-charging electric vehicle batteries, according to an interview with Bloomberg. CATL founder revealed that the company has a significant supply deal with Tesla and also supplies batteries to major automakers like BMW and Mercedes-Benz.
Despite trade tensions and restrictions on Chinese technology in the United States, CATL is unable to directly sell its batteries in the American market. Instead, the company is engaging in licensing, royalty, and services agreements with partners to license its battery technology for a fee. Last year, Ford announced an agreement with CATL to manufacture battery cells using CATL’s expertise. CATL is currently in discussions with numerous U.S. and European carmakers for similar licensing deals.
In addition to collaborating with Tesla on new battery technology, CATL is also working on developing faster-charging batteries. Tesla aims to maintain its market share in the growing EV battery market and produce a vehicle priced at under $25,000. CATL’s founder expressed that there is room for cost reduction in achieving this goal. It was reported earlier this year that Tesla plans to open a small battery-manufacturing plant in Nevada using CATL equipment, with minimal involvement from the Chinese company’s staff in the initial setup process.
