© Reuters.
Investing.com– Shares of China’s Contemporary Amperex Technology Co Ltd (SZ:), also known as CATL, rose on Tuesday after reports showed the company was in talks with Tesla Inc (NASDAQ:) and other U.S. automakers to potentially license its battery technology instead of building a plant there.
The firm’s Shenzhen shares jumped nearly 3% and were close to a 4-½ month high. They vastly outpaced a muted performance in the blue-chip index.
CATL is in discussions to license its battery technology to Tesla and other U.S. automakers, and is also collaborating with Tesla over fast-charging cells while supplying machinery to Tesla’s Nevada factory, The Wall Street Journal and Bloomberg reports showed this week.
The firm, which is one of Tesla’s biggest battery suppliers, has reportedly scrapped plans to build a battery plant in the U.S., and will instead seek to license its technology to U.S. manufacturers.
The move comes amid signs of a slowdown in North American electric vehicle sales through 2023, which weighed on the earnings of several major producers, particularly Tesla, and also set a dour tone for production in 2024.
CATL currently has a licensing deal with Ford Motor Company (NYSE:)to build batteries in a Michigan plant. But the U.S. automaker had recently reduced the scope of the plant, as well as its EV ambitions, in the face of a sales slowdown.
But CATL founder and Chairman Robin Zeng told Bloomberg in an interview that the firm had no plans to slow down production, and planned to increase production of its more technologically advanced products.
Zeng also said the firm had found solutions for fast battery charge times, and was working to make charging even quicker.
