CATL's dominance in EV battery production is causing the U.S. a lot of anxiety
Its EV battery technology is miles ahead of US offerings and it appears that U.S. automobile companies such as Ford and Tesla cannot do without the Chinese battery maker.
Ever wondered what battery company powers electric vehicles for BMW, Ford, Tesla, and Volkswagen?
It's the little known Chinese battery maker called Contemporary Amperex Technology Co. Limited (CATL, for short) which has now caught the attention of the United States and the world due to its rapid expansion and growing dominance.
According to experts, its EV battery technology is miles ahead of US offerings and it appears that U.S. automobile companies such as Ford and Tesla cannot do without the Chinese battery maker.
Little wonder that CATL has become the world’s largest battery manufacturer with a 37.4% share of the global EV battery market, according to data from SNE Research, as of November 2023.
Recently, US lawmakers raised concerns about how CATL's batteries are being used at a Marine Corps base, Camp Lejeune, in North Carolina, prompting the US government to reassess its strategy in a move that could see it decommission CATL’s batteries. Ford's use of CATL's technology has also repeatedly been questioned by US lawmakers, forcing the American automaker to rethink its plans for the joint venture deal with CATL to build an EV battery factory in Michigan.
As pressure mounts on US companies to stop using CATL's batteries with concerns that it may create a dependence on Chinese technology, experts believe that it would take between 5 to 10 years before the US can catch up with China.
