CATL is reportedly in the final stages of setting up the EV battery production facility in the US. This facility will be making cells that can be provided for BMW and Ford electric vehicles. CATL is a leading Chinese battery-making company that has set its presence in global energy technology.
Contemporary Amperex Technology Co Ltd., better known as CATL, is a global energy technology company and the leading EV battery manufacturer in China. Beyond Asia, the company has retained its crown as the world’s largest battery manufacturer by installed capacity for a fifth-straight year. Also, its recent projects implement battery recycling and net-zero carbon manufacturing facilities in China. CATL has begun to expand outside of its home country. Its first announcement came this past April with plans for an 8 GWh battery plant in Germany.
Later after a week, CATL announced a $6 billion investment to mine, manufacture, and recycle batteries in Indonesia, expanding its global reach further. According to the latest report, CATL plans to soon be manufacturing EV batteries in the US as well and could be providing cells to US automakers assembling nearby.
Making batteries fro Ford and BMW
According to a report from Reuters, sources close to the matter say CATL is in the final stages of determining potential sites to set up US manufacturing. Two possible locations include South Carolina and Kentucky, where BMW AG and Ford Motor Company currently have assembly plants. According to sources who asked not to be identified, talks are ongoing, but CATL would provide battery cells to both BMW and Ford from facilities erected near their respective assembly plants. One source elaborated, stating that CATL is looking to commence battery production for BMW in South Carolina by 2026.
In a statement, current CATL customer BMW shared it is “intensively examining the possibility of establishing a battery factory” in the US, as well as acquiring battery materials stateside. The company also said it is in talks with several partners regarding the factory.
Last September, Ford announced a massive EV production project called Blue Oval City in Tennessee, which included a battery plant with the help of SK Innovation. Additionally, the two parties shared plans for a second plant near Ford’s assembly facilities in Louisville, Kentucky. With electric truck demand beginning to soar for the American automaker, additional battery cells in Tennessee or Louisville make sense. Considering Tennessee is where the electrified trucks are currently planned to be produced, a CATL plant feels like a better fit.
Credits- Electrek