Tesla, American Automakers Look to CATL’s Advanced Battery Technology for Licensing Agreements

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

Tesla Inc and other U.S. automakers are in talks with China’s Contemporary Amperex Technology Co Ltd (CATL) to license its battery technology, according to reports from The Wall Street Journal and Bloomberg. 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.

Despite a slowdown in North American electric vehicle sales until 2023, CATL remains committed to expanding its production, focusing on more advanced products and faster battery charging solutions. According to an interview with Bloomberg, CATL’s founder and Chairman, Robin Zeng, stated 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. The decision by CATL to shift towards technology licensing comes at a time when key players in the industry are facing challenges due to the negative outlook for production in 2024. However, CATL’s stock price in Shenzhen rose nearly 3% following these reports, significantly outperforming the blue-chip index.

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