Tesla Battery Supplier CATL Seeks Site for Mexico Plant: Report

China-based Contemporary Amperex Technology Co. (CATL) is expanding its reach with its electric vehicle (EV) battery production plans, with another new North American plant set to be built.

CATL is evaluating at least two sites for a potential EV battery plant in Mexico, according to sources who asked not to be identified in a report from Bloomberg.

Currently, CATL is considering sites in Ciudad Juarez, Chihuahua, and Saltillo, Coahuila, according to the sources.

Both locations are near the Texas border, and CATL may be looking to supply both Tesla and Ford from the upcoming factory, along with other automakers.

Texas has also recently complicated shipping with a move from Governor Greg Abbott to crack down on immigration and drug trafficking across the border.

In one analysis, however, the move toward shipping evaluation at the border has cost the state economy over $4 billion in lost output — primarily due to bridge blockades and shipping delays.

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CATL also plans to supply BMW with battery cells starting as soon as 2025.

The Ningde, China-based company is also considering a second North American battery plant in the U.S., set to cost around $5 billion.

In April, CATL was also approved to construct an EV battery factory near Tesla’s Gigafactory Berlin.

Last month, CATL launched its next-generation “Qilin” fast-charging EV battery packs.