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Chinese electric-vehicle battery maker CATL is in talks with Tesla and other unnamed automakers to license its battery technology and open a new tab in the U.S. instead of building its plant there, the Wall Street Journal reported on Monday.
Details Under Discussion:
The scale of cooperation and details about what technology Tesla would license from CATL are still being discussed and will depend on the EV maker’s cash flow, the report said, citing an interview with CATL Chairman Robin Zeng.
The report added that the Chinese company’s existing partnership with Ford Motor will be a model for similar cooperation with other U.S. carmakers.
Ford said in November it would scale back the investment for its Michigan battery plant to produce low-cost lithium-iron batteries based on technology licensed by CATL following pushback from U.S. lawmakers.
Global Industry Dynamics:
The WSJ report on CATL comes amid a global slowdown in EV demand. U.S. lawmakers tighten their grip over the battery industry to prevent China-produced minerals or Chinese battery companies from winning electric vehicle tax credits.
According to an interview Bloomberg News had with Zeng, CATL is also working on faster-charging batteries, opening a new tab for Tesla, and supplying machinery to the Elon Musk-led company’s factory in Nevada.
Adaptation to Market Changes:
Zeng had told reporters earlier this month that the company was discussing setting up research and development centers in Hong Kong to create new technologies that can be licensed abroad as domestic EV demand weakens.
