CATL Considers U.S. Plant If Investment Barriers Lift

NINGDE, China (Reuters) – CATL, the world's largest battery manufacturer, is open to building a U.S. factory contingent on favorable investments from the incoming Trump administration, according to founder Robin Zeng.

Zeng noted that previous attempts to invest in the U.S. were blocked by government regulations. He expressed a willingness for future investment opportunities.

Chinese EV firms, including CATL and BYD, face significant trade barriers in the U.S., driven by competition and security concerns. Current regulations exclude Chinese-made batteries from consumer EV subsidies, with a 100% tariff on EV imports from China.

Despite these challenges, Zeng noted that recent comments by Trump about providing incentives for car manufacturers to establish plants in the U.S. keep him hopeful for future investments.

Zeng's remarks mark a significant statement from a major Chinese supplier in light of the recent U.S. elections. Although CATL's presence in the U.S. is currently limited to battery-production licensing agreements, Zeng is optimistic about potential future expansion.

Key partnerships, such as Ford’s Michigan plant for lithium-phosphate batteries and Tesla’s licensing deal with CATL, highlight the ongoing collaboration despite trade restrictions. CATL supplies batteries for Tesla’s Shanghai factory, among others.

Zeng also discussed his perception of Tesla’s strategies with CEO Elon Musk, particularly regarding Musk's reliance on cylindrical batteries, indicating skepticism about their success. He raised concerns about Musk’s ambitious timelines for technology rollouts, suggesting they may be overly optimistic.

Zeng stated, "Maybe something needs five years. But he says two years. I definitely asked him why. He told me he wanted to push people."

Despite uncertainties, Zeng believes in the direction of Tesla’s approach, particularly towards AI in autonomous vehicles. However, he cautioned on the risks of overpromising on timelines for technological advances.

In summary, Zeng recognizes both the potential in collaboration and the challenges posed by policies and technology expectations in the evolving EV landscape.