May 19, 2024 11:37 pm
CATL, a Tesla supplier, sees increase in stock price after news of licensing battery technology emerges

CATL, a Chinese battery technology company, has seen its shares surge after reports emerged that the company is in discussions with Tesla and other US automakers to license its technology instead of building a plant in the US. CATL’s stock in Shenzhen rose nearly 3%, reaching a 4-½ month high, showing stronger performance compared to the blue-chip index.

According to reports from The Wall Street Journal and Bloomberg, CATL is exploring the possibility of licensing its battery technology to Tesla and other American automakers. The company is also collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s factory in Nevada. This shift in strategy comes as CATL is one of Tesla’s main battery suppliers.

While CATL had plans to build a battery plant in the US, those plans have been put on hold as the company now looks to license its technology to American manufacturers instead. This decision comes amidst a slowdown in North American electric vehicle sales projected through 2023, impacting the earnings of major producers like Tesla.

Despite the challenges faced by the industry, CATL’s founder and Chairman Robin Zeng remains optimistic about the company’s future. Zeng stated in an interview with Bloomberg that CATL is focused on increasing production of its more advanced products and has found solutions for faster battery charge times, with plans to further improve charging speeds. Additionally, CATL has an existing licensing deal with Ford to build batteries in a Michigan plant, although the scope of the collaboration has been adjusted in response to changing market conditions.

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