On Monday of this week, Zeng Yuqun, Chairman of CATL, revealed in an interview with American media in Hong Kong that CATL is collaborating with Tesla to develop faster charging batteries and is providing equipment for Tesla's factory in Nevada.
He also confirmed that CATL has a plan for a second listing, but will not be in a hurry to raise more funds immediately and dilute the equity of existing shareholders.
CATL is closely cooperating with Tesla
Zeng Yuqun revealed in an interview that these two electric vehicle giants are collaborating on battery technology, especially new electrochemical structures, to achieve faster charging.
Zeng Yuqun also confirmed that CATL is providing equipment for Tesla's factory in Nevada. According to insiders, Tesla is planning to expand battery production in Nevada and open a small factory using idle equipment from CATL.
He also talked about Tesla seeking to launch an electric car priced below $25000. Tesla's current main sales models are the Model 3 and Model Y, and the company is hoping to launch an economy electric vehicle priced below $25000 to improve its sluggish growth.
"There is always room for cost reduction, depending on what the goal of a $25000 car is," said Zeng Yuqun. "If it's a robot taxi, we don't have to worry about the cost reduction of each battery because our batteries have a longer lifespan, so their average cost is actually lower."
There is indeed a plan for a second listing
Zeng Yuqun also revealed that although CATL does have plans for a secondary listing, its current healthy cash flow means that CATL will not be in a hurry to raise more funds immediately or dilute the equity of existing shareholders.
According to sources quoted by domestic media at the end of last year, CATL is considering listing on the Hong Kong Stock Exchange.
Sources pointed out at the time that the company had internal and external discussions with financial advisors regarding potential listing matters, and could go public in Hong Kong as early as 2024. CITIC Securities, CICC, Goldman Sachs, and UBS are expected to be the lead actors in the transaction.
Be optimistic about the technology licensing model
Zeng Yuqun also expressed optimism about the model of Ningde Times authorizing battery manufacturing technology to partners, collecting franchise fees, and providing services.
Last February, CATL and Ford reached an agreement to adopt a technology licensing service model to help Ford build its own battery factory.
Zeng Yuqun talked about this collaboration in this interview and stated that CATL plans to train Ford Motor Company engineers and invite them to CATL's headquarters in Ningde, Fujian or its factory in Germany. He also stated that CATL is negotiating similar arrangements with 10 to 20 other car manufacturers in the United States and Europe.
The Ford Ningde Times factory is expected to start production by the end of 2026. But Zeng Yuqun stated that his planned production capacity has been reduced to about 20GWh, lower than the 35GWh reported earlier last year.
Zeng Yuqun stated that as the United States puts pressure on companies such as CATL, having a trustworthy partner that transcends geopolitics is the most important thing for the company.
Zeng Yuqun also said, "Geopolitics is very complex for our business managers, but the most important thing is the trust of our customers, which goes beyond short-term government and political turmoil. Action speaks louder than words."
He revealed that CATL is focusing on building production capacity in regions such as Europe and Southeast Asia.