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 lots 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 practically 37% of all electrical car batteries offered 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 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 don’t have any considerably hostile impression” 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 will defend the pursuits of the corporate and its shareholders.
If something, it could possibly be an even bigger blow to the corporate’s fame. Following the information, CATL’s inventory was down round 3% on Monday.
The DOD says the listing is a crucial persevering with effort to focus on and counter the Folks’s Republic of China’s (PRC) Army-Civil Fusion technique.
In response to the DOD, the technique “helps the modernization targets of the Folks’s Liberation Military (PLA) by guaranteeing it might probably 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 take care of its commanding lead within the world EV battery market. Final month, CATL revealed plans to listing on the Hong Kong Inventory Trade to gas 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 shortly increasing its EV battery swap community with plans to step by step part out fuel stations. Its new Choco-SEB batteries make swapping a battery even simpler than filling a fuel tank.
In the meantime, a senior govt from Panasonic Vitality advised 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’ll hold you updated with the most recent.
Supply: US Division of Protection, CATL
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