CATL, a Chinese battery technology company, has seen its shares surge after reports emerged that the company is in discussions with Tesla and other U.S. automakers to license its technology instead of building a plant in the U.S. This shift in strategy comes as CATL is one of Tesla’s main battery suppliers, and the slowdown in North American electric vehicle sales projected through 2023 is impacting the earnings of major producers like Tesla.
CATL’s stock in Shenzhen rose nearly 3%, reaching a 4-½ month high, showing stronger performance compared to the blue-chip index. The company is also collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s factory in Nevada. 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.