• Tue. May 28th, 2024

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


Mar 26, 2024

Shares of China’s Contemporary Amperex Technology Co Ltd (CATL) surged on Tuesday following reports that the company is in talks with Tesla Inc and other U.S. automakers to license its battery technology rather than build a plant in the U.S. The stock price of CATL in Shenzhen rose nearly 3% and was close to a 4-½ month high, significantly outperforming the blue-chip index.

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

The decision to shift towards technology licensing comes at a time when the North American electric vehicle sales are on a downward trend until 2023. This slowdown in sales has impacted the earnings of key players in the industry, especially Tesla, leading to a negative outlook for production in 2024. Despite these challenges, CATL remains committed to expanding its production, focusing on more advanced products and faster battery charging solutions.

CATL’s founder and Chairman, Robin Zeng, 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.

By editor

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