CATL, the world’s largest battery manufacturer, is collaborating with Tesla on new battery technologies that have the potential to lead to faster-charging electric vehicle batteries. Despite challenges arising from U.S.-China trade disputes and restrictions on Chinese technology in American-made products, CATL is finding ways to work around these hurdles.
CATL has established a significant supply deal with Tesla and also supplies batteries to other major automakers such as BMW and Mercedes-Benz Group AG. Through licensing, royalty, and services agreements, CATL partners with other companies to license their battery technology for a fee. Ford, for example, has reached an agreement with CATL to manufacture battery cells using CATL’s battery cell knowledge and services.
CATL is currently in talks with up to 20 U.S. and European automakers to potentially establish licensing agreements similar to the one with Ford. Additionally, CATL and Tesla are collaborating on new electrochemical technology to develop faster-charging batteries. Tesla’s goal is to retain its market share in the growing global EV battery market and to produce an electric vehicle priced below $25,000.
Tesla’s founder, Elon Musk, recently confirmed that the company plans to open a small battery-manufacturing facility in Nevada using CATL equipment. The Chinese company’s staff will assist in setting up the equipment at this facility which will help pave the way for advancements in electric vehicle battery technology
