CATL Shares Surge on News of Licensing Deal with Tesla and U.S. Automakers

CATL, a Tesla supplier, experiences an increase in stock value after reports of licensing advanced battery technology

On Tuesday, the stock price of Contemporary Amperex Technology Co Ltd (CATL) in Shenzhen surged by nearly 3%, reaching a 4-½ month high. This increase came after reports emerged that CATL is in talks with Tesla Inc and other U.S. automakers to license its battery technology rather than build a plant in the U.S.

CATL, which is a major supplier of batteries for Tesla, has decided to abandon its plans to build a battery plant in the U.S. Instead, the company intends to offer its technology through licensing agreements to American manufacturers. This shift towards technology licensing comes at a time when North American electric vehicle sales are on a downward trend until 2023, impacting the earnings of key players in the industry, including Tesla.

Despite these challenges, CATL remains committed to expanding its production and focusing on more advanced products and faster battery charging solutions. The founder and Chairman of CATL, Robin Zeng, stated in an interview with Bloomberg that the company has no intentions of reducing its production pace and plans to increase the output of its innovative products. Zeng also mentioned that CATL has made significant progress in improving battery charge times and is actively working on making the charging process even quicker.

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