Chinese battery giant, CATL, seems to have big plans for expansion, will the US allow it?
CATL, the world’s leading battery maker, has expressed interest in building a plant in the U.S. if President-elect Donald Trump allows Chinese investment in the electric vehicle (EV) supply chain. Robin Zeng, the company’s founder and chairman, noted that the U.S. government had previously rejected their investment plans, but he remains open to future opportunities.
CATL, along with other Chinese EV and battery companies, has faced significant trade barriers in the U.S., including protectionist measures supported by both political parties, which have kept Chinese-made batteries and EVs out of the American market.
Moreover, these trade barriers, which started during Trump’s first term, include tariffs and restrictions that prevent Chinese-made batteries from qualifying for EV subsidies in the U.S. Additionally, vehicles with Chinese-connected car technology are blocked, and a 100 percent tariff effectively bans Chinese EV imports.
A recent Republican bill aims to further limit EV purchase incentives for vehicles powered by Chinese battery technology, including those licensed by American companies like Tesla and Ford.
On top of that, despite these obstacles, Trump has expressed support for Chinese automakers building plants in the U.S., which keeps CATL interested in potential investments if the policy environment changes. Currently, CATL’s presence in the U.S. is limited to battery-production licensing agreements.
For example, CATL has a deal with Ford to supply lithium-phosphate batteries for the Mustang Mach-E and F-150 Lightning in Michigan. Tesla has a similar licensing agreement with CATL for battery production in Nevada, expected to start in 2025.
In an interview with Reuters, Zeng discussed his ongoing collaboration with Tesla, noting that CATL supplies batteries to Tesla’s Shanghai factory, which is Tesla’s largest and most profitable. Zeng also shared insights into his conversations with Tesla CEO Elon Musk, praising Musk’s focus on AI-powered autonomous vehicle technology.
Zeng believes Tesla’s reliance on cameras and AI for self-driving cars is the right direction but expressed skepticism about Tesla’s 4680 cylindrical battery, predicting it will not succeed. He also criticized Musk for setting overly ambitious timelines for new technology rollouts, citing Musk’s tendency to promise quicker results to motivate staff.
Despite the challenges, Zeng remains hopeful that the policy environment in the U.S. will eventually change, allowing for greater collaboration and investment in the American EV sector. Will President Trump see this as a threat or will he cooperate? We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
