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

CATL Abandons U.S. Battery Plant Plans, Shifts Focus to Technology Licensing Amid North American EV Sales Slowdown

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. This news caused shares of the Chinese company to surge on Tuesday, with the stock price in Shenzhen rising nearly 3% and reaching a 4-½ month high.

The decision by CATL to shift towards technology licensing comes at a time when 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, including Tesla, leading to a negative outlook for production in 2024. Despite these challenges, CATL remains committed to expanding its production and focusing on more advanced products and faster battery charging solutions.

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’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.

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