Tesla has announced a partnership with CATL, the world’s largest battery manufacturer, to develop new battery technologies that could result in faster-charging electric vehicle batteries. CATL founder revealed in an interview with Bloomberg that the two companies are working on this project.
The collaboration between Tesla and CATL is significant as it will allow Tesla to maintain its market share in the growing global EV battery market and produce a vehicle priced below $25,000. CATL’s founder stated in the interview that there is potential for cost reduction depending on the target price for the $25,000 car.
However, due to U.S.-China trade and technology conflicts and restrictions on Chinese technology used in American-made products, CATL is unable to sell its batteries directly in the United States. Instead, the company is operating under licensing, royalty, and services (LRS) agreements with partners to license battery technology for a fee. Ford, one of Detroit’s Big Three automakers, announced an agreement with CATL last year to manufacture battery cells using CATL’s lithium iron phosphate (LFP) battery cell knowledge and services.
CATL is currently in talks with about 20 U.S. and European automakers to potentially reach similar licensing agreements. The collaboration between Tesla and CATL aims to develop new electrochemical technology for faster-charging batteries which will be beneficial for all parties involved.
In addition to this partnership, Tesla has also announced plans to open a small battery-manufacturing plant in Nevada using equipment from CATL, with minimal involvement from the Chinese company. This collaboration will allow Tesla to produce more affordable electric vehicles while maintaining its position as a leader in the industry.
Overall, this partnership between Tesla and CATL represents a significant step forward in the development of faster-charging electric vehicle batteries and will have far-reaching implications for both companies as well as the automotive industry as a whole.
