Investing.com – Shares of Chinese company Contemporary Amperex Technology Co Ltd (SZ:), also known as CATL, rose on Tuesday after reports emerged that the company is in talks with Tesla Inc (NASDAQ:) and other U.S. automakers to potential licensing of its battery. technology instead of building a factory there.
The company’s shares in Shenzhen jumped almost 3% and approached their highest in 4.5 months. They significantly outperformed the blue chip index’s subdued performance.
CATL is in talks to license its battery technology to Tesla and other U.S. automakers, and is also collaborating with Tesla on fast-charging cells while supplying equipment to Tesla’s Nevada plant, reports from The Wall Street Journal and Bloomberg showed this week.
The firm, which is one of Tesla’s largest battery suppliers, has reportedly abandoned plans to build a battery factory in the US and will instead seek to license its technology to US manufacturers.
The move comes amid signs of a slowdown in North American electric vehicle sales through 2023, which will weigh on earnings at several major manufacturers, especially Tesla, and also set a gloomy tone for production in 2024.
CATL currently has a licensing agreement with Ford Motor Company (NYSE:) to produce batteries at a plant in Michigan. But the US automaker recently scaled back the plant as well as its electric vehicle ambitions due to slowing sales.
But CATL founder and chairman Robin Zeng said in an interview with Bloomberg that the firm has no plans to slow down production and plans to increase production of its more technologically advanced products.
Zeng also said that the company has found a solution to reduce battery charging time and is working to make charging even faster.