China's Battery Giant CATL Eyes U.S. Expansion Amid Trade Tensions

CATL, a leading Chinese battery manufacturer, is considering opening a U.S. plant if Chinese investments in the EV supply chain are welcomed. Despite existing trade barriers, interest remains high due to potential incentives discussed by former President Trump. Licensing deals with Ford and Tesla mark CATL's presence in the U.S.

CATL, the world's top battery producer, is exploring the possibility of establishing a manufacturing plant in the United States. This move hinges on whether Chinese investments in the electric vehicle supply chain will be embraced, as articulated by the company's founder, Robin Zeng, in a recent interview with Reuters.

The market has been challenging for Chinese battery and electric vehicle manufacturers due to protectionist policies and trade wars initiated under Donald Trump's administration, further enforced by the Biden administration. Despite these barriers, Zeng remains optimistic about future investments in the U.S.

CATL has already made headway into the American market through licensing agreements with major automakers like Ford and Tesla. Ford is set to produce lithium-phosphate batteries in Michigan, while Tesla plans to commence battery production in Nevada by 2025, leveraging CATL's technology.

(With inputs from agencies.)