Media Watch - NVX related, page-5725

CATL looking at options to set up shop in the US.

Random fact, CATL used to own 1/3 Novonix prior to 2017. Part of the sale was an on going supply agreement, how ever I believe this was related to battery testing equipment and possible natural graphite from the Mount Dromedary Graphite Project which got put on hold.

I wonder if there is still any ongoing relationship between the two companies.

I would be surprised if CATL set up shop in the US with current tensions between the US and China.

https://www.yicaiglobal.com/news/chinese-ev-battery-giant-catl-looks-at-producing-in-us

Yicai Global) Feb. 16 -- Contemporary Amperex Technology is exploring the possibility of setting up a factory in the US as the world’s biggest electric car battery maker seeks to expand its footprint overseas.

CATL has communicated with its US clients, including both new energy and traditional auto manufacturers, on possible modes of co-operation including localized production, according to an investor research note released yesterday in which CATL spoke with 50 investors including Hillhouse Capital, Sequoia Capital and Singaporean sovereign fund Temasek.

However, there are still many specifics that need to be taken into account, including worker training, unions and other factors that affect quality and cost, it said. The firm’s biggest challenges for future development are its growth rate, organizational capacity and internationalization of staff, it added.

One US energy storage firm has expressed interest, but it still needs to look at production capacity, customer demand and manufacturing costs, the Ningde, southeastern Fujian province-based company said.

CATL, which operates 10 plants, uses US chips in its battery management system, but otherwise does not rely on US raw materials and components, it said. The company is in the process of developing its own chips.

The short-term rise in the cost of raw materials, including lithium carbonate, will have a certain impact on CATL, but can be hedged in various ways, it said Copper and aluminum usage, for instance, can be greatly reduced through new technologies.

The company recommends the Choco-Swapping Electric Block for EV models priced between CNY80,000 (USD12,620) and CNY120,000, which makes the autos more compatibly priced with fossil fuel-powered ones. Also, the battery swap is as quick as refueling a vehicle.

The company is currently developing a new ‘carbonate system’ battery called M3P which will be cheaper than lithium-ion batteries.

CATL’s share price [SHE:300750] was trading up 1.81 percent at CNY536.55 (USD85) as of 12:45 p.m. China time today. The stock plunged last week, wiping USD34.5 billion off its market value, although it has rallied somewhat since then. The rout was unlikely to be due to the firm’s performance and probably has more to do with tightening global liquidity conditions and growing competition, analysts said at the time.