The world’s largest EV battery maker was designated as a “Chinese language Army 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 which means.
It’s no secret that CATL dominates the worldwide EV battery market. Within the first 11 months of 2024, CATL accounted for almost 37% of all electrical car batteries bought globally.
China’s BYD got here in a distant second, with a share of round 17%. LG Vitality (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 world EV leaders like Tesla, VW, Nissan, BMW, and Mercedes-Benz additionally select to make use of them.
After touchdown on the US blacklist, CATL mentioned in a press release that it “has by no means engaged in any military-related enterprise or actions.” The battery big 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 opposed influence” on the corporate.
Why is CATL now on the US blacklist?
CATL will work with the DOD to “deal with the false designation,” together with authorized motion if wanted. The battery maker mentioned it might defend the pursuits of the corporate and its shareholders.
If something, it may very well be an even bigger blow to the corporate’s popularity. Following the information, CATL’s inventory was down round 3% on Monday.
The DOD says the checklist is a crucial persevering with effort to focus on and counter the Individuals’s Republic of China’s (PRC) Army-Civil Fusion technique.
In keeping with the DOD, the technique “helps the modernization objectives of the Individuals’s Liberation Military (PLA) by making certain it could actually purchase superior applied sciences and experience developed by PRC corporations, universities, and analysis packages that seem like civilian entities.”
In the meantime, CATL continues to launch new tech to take care of its commanding lead within the world EV battery market. Final month, CATL revealed plans to checklist on the Hong Kong Inventory Alternate to gasoline its world 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 rapidly increasing its EV battery swap community with plans to progressively 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 government from Panasonic Vitality instructed Reuters on Monday that lowering its provide chain dependence on China for EV batteries made within the US is the primary precedence.
Test 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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