Contemporary Amperex Technology Co Ltd (CATL) Announces Collaboration with U.S. Automakers to License its Battery Technology Amidst Slowing North American EV Sales

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

Contemporary Amperex Technology Co Ltd (CATL) announced on Tuesday that it is in talks with Tesla Inc and other U.S. automakers to license its battery technology rather than building a plant in the U.S. The company’s stock price in Shenzhen surged nearly 3%, outperforming the blue-chip index, as investors showed excitement about this new development.

According to reports from The Wall Street Journal and Bloomberg, CATL is also collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s Nevada factory. However, the company has decided to abandon its plans for a battery plant in the U.S., instead opting to offer its technology through licensing agreements to American manufacturers.

This decision comes at a time when North American electric vehicle sales are on a downward trend until 2023, impacting the earnings of key players in the industry, including 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 that the company has no intentions of reducing its production pace and plans to increase output of innovative products. He also mentioned that CATL has made significant progress in improving battery charge times and is actively working on making the charging process even quicker.

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