CATL and Tesla Collaborate on New Battery Technologies for Faster-Charging EVs

Collaboration between Tesla and CATL Leads to Breakthrough in Fast-Charging Battery Technology

Tesla, a leading electric vehicle manufacturer, and CATL, the world’s largest battery manufacturer, are collaborating on the development of new battery technologies that could result in faster-charging electric vehicle batteries. The founder of CATL revealed in an interview with Bloomberg that the two companies are working on this project.

CATL has established a significant supply agreement with Tesla and serves as a battery supplier to major automakers such as BMW and Mercedes-Benz Group AG. However, due to U.S.-China trade and technology conflicts and restrictions on Chinese technology used in American-made products, CATL is unable to sell its batteries directly in the United States. Instead, the company is operating under licensing, royalty, and services (LRS) agreements with partners to license battery technology for a fee.

In addition to working with CATL, Tesla is focused on maintaining its market share in the growing global EV battery market and producing a vehicle priced below $25,000. According to the interview with Bloomberg, there is potential for cost reduction depending on the target price for the $25,000 car. Tesla plans to open a small battery-manufacturing plant in Nevada using equipment from CATL with minimal involvement from the Chinese company. This collaboration between CATL and Tesla aims to develop new electrochemical technology for faster-charging batteries.

Sophia Reynolds

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