• Tue. May 28th, 2024

Tesla collaborates with CATL to develop quicker-charging battery technology

Byeditor

Mar 25, 2024

Tesla and battery manufacturer CATL are collaborating on the development of new battery technologies that could lead to faster-charging electric vehicle batteries. The founder of CATL, the world’s largest battery manufacturer, shared this information in an interview with Bloomberg published on Monday. CATL, officially known as Contemporary Amperex Technology Co. Ltd., has a significant supply deal with Tesla and also supplies batteries to other major automakers like BMW and Mercedes-Benz Group AG.

Despite the challenges posed by the U.S.-China trade and technology disputes and restrictions on Chinese technology in American-made products, 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. Last year, Ford, one of Detroit’s Big Three automakers, announced an agreement with CATL to manufacture battery cells using CATL’s lithium iron phosphate (LFP) technology.

CATL is currently 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. CATL’s founder, Chinese billionaire Robin Zeng, mentioned in the interview with Bloomberg that there is always room for cost reduction in achieving this goal.

In addition, it was confirmed that 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.

By editor

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