Sun. Jun 16th, 2024
Tesla collaborates with CATL to develop quicker-charging battery technology

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer, is collaborating with Tesla on the development of new battery technologies that could lead to faster-charging electric vehicle batteries. CATL, officially known as Contemporary Amperex Technology Co. Ltd., has a significant supply deal with Tesla and also supplies batteries to other major automakers like BMW and Mercedes-Benz Group AG.

Despite the challenges posed by the U.S.-China trade and technology disputes and restrictions on Chinese technology in American-made products, CATL is unable to sell its batteries directly in the United States. However, the company is working with partners through licensing, royalty, and services (LRS) agreements that allow them to license the battery technology for a fee. Last year, Ford, one of Detroit’s Big Three automakers, announced an agreement with CATL to manufacture battery cells using CATL’s lithium iron phosphate (LFP) technology.

CATL is currently in talks with up to 20 U.S. and European carmakers to potentially form licensing agreements similar to the one with Ford. Additionally, CATL and Tesla are collaborating on new electrochemical technology to develop faster-charging batteries, with a focus on Tesla’s goal of manufacturing a vehicle priced below $25,000. Chinese billionaire Robin Zeng mentioned in an interview with Bloomberg that there is always room for cost reduction in achieving this goal.

In addition, it was confirmed that Tesla plans to open a small battery-manufacturing plant in Nevada using CATL equipment that is not currently in use, with minimal involvement from the Chinese company. This collaboration showcases the importance of partnerships in the rapidly expanding global electric vehicle battery market.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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