CATL, the world's largest battery manufacturer, is considering building a local factory on US soil, but there is a big “if”. The company's chairman said he is open to building a US battery facility if President-elect Donald Trump clears the way, despite the escalating trade war with China during his first term.
Contemporary Amperex Technology Co., Limited, better known as CATL, has been the world's largest battery manufacturer by global market share for the past decade. The company specializes in a portfolio of battery cells with different chemistries and energy storage solutions and remains focused on the development of emerging technologies such as solid-state.
The company has developed fast-charging LFP cells for OEMs such as SAIC-GM and, in the past few years, has begun developing battery technology for zero-emission aviation, including electric aircraft and eVTOLs with companies such as AutoFlight.
Already not only operating in China, CATL had shared plans for six new locations in other countries, including Germany, Thailand, Hungary, Indonesia, and two in the US (with Ford and Tesla). The last two of that list are expected to work under licensing agreements.
This past May, CATL shared the objectives of building two additional battery factories – One in Spain in partnership with Stellantis and a fully owned battery cathode plant in Morocco, to supply those key components to its pending European plants mentioned above.
Although CATL has many plans to enter the US, it has faced opposition from Democrats and Republicans alike because of its government-sponsored operation. The Biden administration's deflationary policies echoed such sentiments, and Trump himself fought a trade war with China during his last term in the White House.
With Trump taking office in 2025, the CATL chairman expressed his hope that the US manufacturing sector will open up a little, but it will require the full support of the President-elect to make it happen. That's a tall order for a Chinese company that has a strong hold on the battery market.
CATL chairman is open to Chinese investment in US goods
As reported by ReutersCATL Founder and Chairman Robin Zeng said the company is open to the US battery industry but would need Trump to extend some hospitality to allow that process. According to Zeng:
At first, when we wanted to invest in the US, the US government said no. For me, I'm really open-minded.
CATL imports currently face some trade protections to keep things fair for local automakers, which is why most current EV models are ineligible for the full $7,500 federal tax credit, even if the vehicles are assembled in the US. Before Biden's Inflation Reduction Act (IRA), President Trump targeted many Chinese OEMs like CATL for their government subsidies while talking about national security.
However, the president-elect appears to be open to companies like CATL bringing battery production to the US under certain conditions. According to interview no Reuters last August:
We will issue incentives, if China and other countries want to come here, they will sell cars and build plants here, they will hire our workers.
That may sound like a refreshing idea from the perennially divisive Trump. However, he is simply echoing the policies set forth by his predecessor in the IRA – a move that has already been made to bring more productivity and jobs to American workers. The Trump campaign did not immediately respond to a request for comment.
This will be a closely watched story as the torch is passed to the White House. Trump's re-election has created more questions than answers about the future of EV production in the US, but it's hard to imagine local OEMs achieving so much success without a boom like CATL nearby.
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