CATL would consider building a plant in the US if Trump opens the door for Chinese investment in the US EV supply chain, the battery maker's chairman Robin Zeng said.
CATL will consider building a plant in the US if President-elect Donald Trump opens the door to Chinese investment in the US electric vehicle (EV) supply chain, the world's largest battery maker's chairman, Robin Zeng, was quoted as saying in a Reuters report today.
“Originally, when we wanted to invest in the US, the US government said no,” Zeng said in an interview with Reuters last week. “For me, I'm really open-minded.”
Zeng's comments were the first by a major Chinese supplier to US automakers since Trump's victory in the November 5 election.
Trump wants to prevent Chinese car imports, but has said he remains open to Chinese automakers producing cars in the US, the report noted.
In an interview with Reuters in August, Trump said, “We're going to give incentives, and if China and other countries want to come here and sell the cars, they're going to build plants here, and they're going to hire our workers.”
Such comments have kept Zeng interested in a US expansion for CATL. “I do hope that in the future they are open to investments,” he said.
Batteries made in China do not qualify for consumer EV subsidies enacted by the Biden administration, which has also moved to block any cars that use Chinese connected car technology.
In addition, Chinese EV exports to the US are subject to a 100 percent tariff.
CATL has limited its presence in the US market to battery production license agreements. Ford is opening a plant in Michigan to produce low-cost lithium phosphate batteries for its Mustang Mach-E and F-150 Lightning pickup truck under a licensing agreement with CATL.
Tesla has a similar agreement to license CATL technology to produce batteries in Nevada. The factory operation is expected to launch in 2025, a person familiar with the matter told Reuters.
CATL is a major supplier to Tesla's Shanghai factory, which is Tesla's largest with an annual capacity of nearly 1 million vehicles.
In addition to Tesla, CATL's batteries are used in models from a host of other EV makers including Nio (NYSE: NIO), Li Auto (NASDAQ: LI), and Xiaomi (HKG: 1810, OTCMKTS: XIACY).
In August, CATL opened its first new energy experience center in Chengdu, Sichuan province in southwest China, a 13,800-square-meter facility that brings together nearly 100 models from nearly 50 car brands.
CATL is the world's largest EV battery maker, with a 36.7 percent share in the January-September period, making it the only battery supplier in the world with a market share of more than 30 percent, according to South Korean market researcher SNE Research.
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