China’s Contemporary Amperex Technology Co. Ltd. (CATL) is working on pioneering faster charging batteries specifically for Tesla, as the latter seeks to maintain its competitive edge in the market and introduce an affordable electric vehicle priced under $25,000, as reported by Bloomberg.
“There’s always room for cost reduction depending on what the $25,000 car’s aim is,” said Robin Zeng, the billionaire chairman of CATL, during an extensive interview with Bloomberg News. Zeng further elaborated, “If it’s for robotaxis, we don’t have to worry about the cost reduction for each cell as our batteries have a longer life cycle and so their average cost is actually lower.”
Zeng also confirmed CATL’s role in enhancing Tesla’s manufacturing capabilities in Nevada by supplying machinery. This development follows a report by Bloomberg last month about Tesla’s plans to boost its battery production using idle CATL equipment, a move supported by sources familiar with the situation.
He also remarked on the synergy between Tesla and CATL: The two electric vehicle heavyweights — Zeng described Musk as “super energetic, and I am way behind him” — are also working together on battery technologies, in particular new electrochemical structures, to allow for faster charging, he said.
CATL, which also serves customers such as BMW, Mercedes-Benz, and Nio, is facing restrictions in direct sales within the U.S. market.
Zeng voiced optimism about a licensing model that CATL is exploring to overcome these hurdles, noting the company’s initiative to train engineers from various automakers, including Ford, by inviting them to CATL’s facilities in China and Germany. “CATL is in talks with around 10 to 20 other automakers in the US and Europe regarding a similar arrangement,” Zeng disclosed.
The collaboration with Ford, which involves licensing CATL’s technology for use in a Michigan battery plant, has attracted political scrutiny. Despite the controversy, Zeng confirmed that the project is expected to commence production by the end of 2026 with a revised capacity.
On the geopolitical front, Zeng emphasized the significance of building trust beyond political and governmental fluctuations: “Geopolitics is very complicated for us business managers but what matters most is client trust that transcends short-term governments and political disturbances,” he stated. “Actions speak louder than words.”
With the U.S. government pushing for a more self-reliant EV infrastructure, CATL is exploring expansion opportunities in geopolitically neutral regions to ensure access to the best battery technologies worldwide. Despite the potential for a secondary listing to raise funds, Zeng highlighted CATL’s strong financial position, indicating no immediate need for additional capital, prioritizing technological advancement and strategic expansion instead.