CATL Will Manufacture in the US Once Trump Loosens Foreign Trade Contractions

 

 

Robin Zeng, the Chairman of the world’s top battery maker Contemporary Amperex Technology Co. Limited (CATL), has signaled interest in establishing a CATL plant in the US if President-elect Donald Trump permits Chinese investments in the electric vehicle (EV) supply chain. He noted that the contracting trade policies including 100% import tariffs prevented many Chinese EV and EV battery firms receiving subsidies from the Chinese government from entering the US market during Trump's first term and Biden's current term primarily due to national enterprise protection and national security concerns. CATL battery exports were subject to tariff barriers and failed to enter the US.

 

The transition came as Donald Trump expressed his acceptance of Chinese automakers and EV battery makers selling products in the US by building local factories and hiring American workers. Trump's openness prompted CATL to expand its business into the US. Zeng shared that when CATL initially aimed to invest in the US, it was rebuffed by the government. However, with Donald Trump signaling a willingness to negotiate Chinese investment under specific conditions, Zeng remarked on CATL’s renewed interest in the US market. But as of Nov. 12, Trump's team had not responded to this remark.

 

CATL currently licenses its technology to companies like Ford, which is set to build lithium-phosphate batteries in Michigan for the Mustang Mach-E and F-150 Lightning, and Tesla, which is reported to launch the battery production in Nevada plant in 2025. These deals allow CATL to contribute to US EV production without directly manufacturing in the US, representing a compromise under existing trade constraints. CATL has good access to US sales, as it provides batteries for Tesla’s electric vehicles, one of Tesla’s most profitable operations.

 

CATL’s positive cooperation with Tesla will be a very crucial point for its US entry. However, Zeng’s professional argument with Tesla CEO Elon Musk added some risks to this cooperation. Zeng openly questioned Musk’s focus on cylindrical batteries and cautioned against Tesla’s tight timelines, noting that Musk’s ambitious deadlines often overestimate the feasibility of completing projects. Musk, however, insists that the compressed time frames drive his employees to perform better, so the deadlines are feasible to meet.

 

Looking ahead, whether CATL will enter the US to build factories depends primarily on changes in US trade policy under Trump and secondarily on its partnership with Tesla.

 

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