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CATL's Strategy for Securing Its Place in the Tesla Battery Market

CATL's Strategy for Securing Its Place in the Tesla Battery Market


Tesla battery supplier CATL has a sure real way to maintain its grip on electric vehicle battery market. But the situation may force Tesla to look fore other battery suppliers too.

Although CATL has faced pressure from the US on a number of fronts, CATL is seemingly unfazed by the competition. The Shanghai facility is one of four new production plants the Chinese battery giant has planned, and it will be the largest of them all.

CATL’s ambitious plans for new battery production facilities validate its decision to stay put in China. Despite the pressure from the US and other nations, CATL is confident that it can continue to be the global leader in battery cell production. As the competition heats up, CATL’s growth strategy is the real way to maintain its grip on the battery market.

Teslarati reports that "It remains unclear how Tesla’s relationship with CATL will change in the coming years, but with the changes that have been put in place by the Inflation Reduction Act, there is no doubt that it will. And as European countries also look to move away from China as a sole supplier, Tesla may become more incentivized than ever to distance itself and work with new partners."

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.