Chinese power battery giant CATL has sued a smaller rival, China Aviation Lithium Battery Technology (CALB), for patent infringement involving the latter's entire product line, the China Securities Journal reported Wednesday.
If CALB loses the lawsuit, its entire product line could be banned, wallstreetcn.com said, citing legal sources.
CALB said the products it offers to customers have undergone a thorough risk investigation by a professional intellectual property team and believes its products do not infringe on the intellectual property rights of others, according to a report by jiemian.com.
CATL is China's largest power battery supplier, with an installed base of 25.76 GWh in China from January to June and a market share of 49.1 percent, according to the China Automotive Battery Innovation Alliance (CABIA).
CALB ranked fourth with 3.63 GWh of power batteries installed in China in the same period, with a market share of 6.9%.
CALB had said on June 7 that it would IPO in 2022.
CALB is one of the battery suppliers for the Wuling Hongguang Mini EV, a model that has set several sales records in China.
Founded in 2015, CALB is engaged in the development, production and sales of new energy batteries and power systems, and its shareholders include GAC Capital, Sequoia Capital, Xiaomi, according to data provider Qichacha.