CATL, China’s largest battery supplier for electric vehicles, is looking to enter the U.S. market, according to a transcript of remarks by top management during a meeting with institutional investors this week.
The meeting, held at CATL’s headquarters in Ningde, Fujian Province, on Monday, was attended by three executives — CATL’s founder and chairman, Zeng Yuqun, Vice President Jiang Li, and Finance Director Zheng Shu.
When asked about whether CATL would consider producing batteries in the U.S., one executive said the country is a market that “CALT must enter,” according to the transcript. It didn’t specify which official made the comment.
The executives also disclosed that CATL “has had a lot of interaction with American customers, including both startups and traditional car companies,” to discuss “various possible supply and cooperation plans, as well as the possibility of localized production,” according to the transcript.
But CATL would need to consider “the impact on product quality and cost from worker training, efficiency, labor union and other factors,” before committing to a U.S. manufacturing footprint, the executive said.
The U.S. government, starting with the Trump presidency, has blacklisted a growing number of Chinese companies and barred them from accessing technology and components developed by U.S. companies.
CATL last week issued a statement to refute rumors spreading in Chinese social media that it faces U.S. sanctions.
During Monday’s meeting, when institutional investors asked whether CATL uses technology, materials or equipment from the U.S. in battery production, company executives said some chips used in CATL’s battery management system are sourced from the U.S.
But CATL is now developing the chips on its own, according to the transcript.
CATL, a Shenzhen-listed company, estimated net profits in 2021 surged 151 percent to 196 percent behind explosive growth in electrified-vehicle and energy storage markets.
SNE Research, a Korean market research firm, said CATL’s annual battery production capacity spiked 167 percent to 96.7 gigawatt hours in 2021, making it by far the world’s largest battery maker.
In the first three quarters of 2021, CATL derived 21 percent of revenue from international markets, up from just 3.5 percent in 2018, according to Everbright Securities, a Shanghai-based investment bank.
