CATL shares surge following news of licensing Tesla battery technology, reports Investing.com

CATL shares surge following news of licensing Tesla battery technology, reports Investing.com

© 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 American automakers to potentially license its battery. technology instead of building a factory there.

The company’s Shenzhen shares jumped nearly 3% and were close to a 4-1/2 month high. They far outpaced a modest performance in the blue-chip index.

CATL is in talks to license its battery technology to Tesla and other U.S. automakers, and is also collaborating with Tesla on fast-charging cells while supplying machinery to Tesla’s Nevada factory, showed this week reports from the Wall Street Journal and Bloomberg.

The company, which is one of Tesla’s largest battery suppliers, has reportedly abandoned plans to build a battery factory in the United States and is instead looking to license its technology to American manufacturers.

The move comes amid signs of a slowdown in electric vehicle sales in North America through 2023, which has weighed on profits at several major producers, including Tesla, and also set a dour tone for production in 2024.

CATL currently has a licensing agreement with Ford Motor Company (NYSE:) to manufacture batteries at a plant in Michigan. But the U.S. automaker recently scaled back the scope of the plant, as well as its electric vehicle ambitions, in the face of slowing sales.

But CATL founder and chairman Robin Zeng told Bloomberg in an interview that the company has no plans to slow production and plans to increase production of its most technologically advanced products.

Zeng also said the company has found solutions for fast battery charging times and is working to make charging even faster.

Source Reference

Latest stories