The world’s largest EV battery maker was designated as a “Chinese language Navy Firm” on Monday by the US Protection Division. CATL, which provides EV batteries to Tesla, BMW, Ford, Volkswagen, Toyota, Nissan, Honda, and plenty of others, is now on the US blacklist. Right here’s what meaning.
It’s no secret that CATL dominates the worldwide EV battery market. Within the first 11 months of 2024, CATL accounted for practically 37% of all electrical car batteries bought globally.
China’s BYD got here in a distant second, with a share of round 17%. LG Power (11.6%), CALB (4.6%), and SK On (4.5%) rounded out the highest 5.
CATL batteries energy main Chinese language OEMs like Geely, NIO, and Li Auto, however international EV leaders like Tesla, VW, Nissan, BMW, and Mercedes-Benz additionally select to make use of them.
After touchdown on the US blacklist, CATL stated in a press release that it “has by no means engaged in any military-related enterprise or actions.” The battery large added that the blacklisting is “a mistake” by the US Division of Protection (DOD).
The designation solely restricts CATL from doing enterprise with the DOD and “is anticipated to haven’t any considerably antagonistic affect” on the corporate.
Why is CATL now on the US blacklist?
CATL will work with the DOD to “handle the false designation,” together with authorized motion if wanted. The battery maker stated it will shield the pursuits of the corporate and its shareholders.
If something, it might be a much bigger blow to the corporate’s repute. Following the information, CATL’s inventory was down round 3% on Monday.
The DOD says the record is a crucial persevering with effort to spotlight and counter the Folks’s Republic of China’s (PRC) Navy-Civil Fusion technique.
Based on the DOD, the technique “helps the modernization targets of the Folks’s Liberation Military (PLA) by guaranteeing it may possibly purchase superior applied sciences and experience developed by PRC corporations, universities, and analysis applications that seem like civilian entities.”
In the meantime, CATL continues to launch new tech to keep up its commanding lead within the international EV battery market. Final month, CATL revealed plans to record on the Hong Kong Inventory Trade to gas its international growth.
Two weeks in the past, CATL launched its new Bedrock Chassis, deeming it the “World’s first ultra-safe skateboard chassis.” It’s additionally shortly increasing its EV battery swap community with plans to regularly section out gasoline stations. Its new Choco-SEB batteries make swapping a battery even simpler than filling a gasoline tank.
In the meantime, a senior govt from Panasonic Power informed Reuters on Monday that lowering its provide chain dependence on China for EV batteries made within the US is the primary precedence.
Examine again for extra quickly, as that is an ongoing story. We are going to maintain you updated with the newest.
Supply: US Division of Protection, CATL
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