🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Tesla supplier CATL rises on report of licensing battery technology

Published 03/26/2024, 12:08 AM
© Reuters

Investing.com-- Shares of China’s Contemporary Amperex Technology Co Ltd (SZ:300750), also known as CATL, rose on Tuesday after reports showed the company was in talks with Tesla Inc (NASDAQ:TSLA) 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 Shanghai Shenzhen CSI 300 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:F)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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.