CATL Surges in Stock Price as it Abandons US Plant Plans for Battery Technology Licensing Agreements

By Eleanor Harrison Mar26,2024
CATL, a Tesla supplier, experiences an increase in stock value after reports of licensing advanced battery technology

On Tuesday, the shares of Contemporary Amperex Technology Co Ltd (CATL) in Shenzhen surged by nearly 3%, reaching a 4-½ month high. This significant increase in stock price came after reports 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 battery supplier for Tesla, has decided to abandon its plans to build a battery plant in the U.S. Instead, it intends to offer its technology through licensing agreements to American manufacturers. The company’s founder and Chairman, Robin Zeng, stated in an interview with Bloomberg that CATL has no intentions of reducing its production pace and plans to increase the output of its innovative products.

In addition to licensing its technology, CATL is also collaborating with Tesla on fast-charging cells and supplying machinery to Tesla’s Nevada factory. Despite the downward trend in North American electric vehicle sales until 2023, CATL remains committed to expanding its production and focusing on more advanced products and faster battery charging solutions.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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