Global Partnerships Key to Overcoming Battery Technology Challenges in the EV Market

Tesla collaborates with CATL to develop quicker-charging battery technology

CATL, the world’s largest battery manufacturer, and Tesla are collaborating on new battery technologies to develop faster-charging electric vehicle batteries. This was announced by CATL’s founder in an interview with Bloomberg published on Monday. Despite restrictions on Chinese technology in American-made products due to U.S.-China trade and technology disputes, CATL is unable to sell its batteries directly in the United States. However, the company is working with partners through licensing, royalty, and services (LRS) agreements that allow them to license the battery technology for a fee.

CATL has a significant supply deal with Tesla and also supplies batteries to other major automakers like BMW and Mercedes-Benz Group AG. Last year, Ford announced an agreement with CATL to manufacture battery cells using CATL’s lithium iron phosphate (LFP) technology. Currently, CATL is in talks with up to 20 U.S. and European carmakers to potentially form licensing agreements similar to the one with Ford. Additionally, CATL and Tesla are collaborating on new electrochemical technology to develop faster-charging batteries, with a focus on Tesla’s goal of manufacturing a vehicle priced below $25,000.

Tesla plans to open a small battery-manufacturing plant in Nevada using CATL equipment that is not currently in use, with minimal involvement from the Chinese company. This collaboration showcases the importance of partnerships in the rapidly expanding global electric vehicle battery market.

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