CATL, the world's largest battery maker and long constrained in the U.S. market, has developed a new battery aimed at American pickup trucks. With the Chinese company seen as a possible member of Beijing's economic delegation at the U.S.-China summit on the 24th, attention is turning to whether Chinese batteries and electric vehicles may finally gain entry to the United States.
Zhu Lingbo, chief technology officer of CATL's international business division, said on the 20th that the company had developed a "tall battery" tailored for U.S. pickup trucks, the Financial Times reported on the 21st. Zhu added that the battery, designed for the American pickup segment, has already been tested by U.S. automakers.
CATL and many other Chinese electric vehicle and battery companies have sought access to the U.S. market for years, but steep tariffs, localization requirements and security rules have effectively blocked formal entry. The U.S. Defense Department last year designated CATL as a company suspected of ties to the Chinese military. The U.S. electric vehicle market itself is retreating sharply after the expiration of tax credits and the Trump administration's rollback of vehicle emissions rules.
Despite those barriers, CATL said it could license its technology so that U.S. companies can manufacture locally. That approach is expected to resemble the arrangement CATL struck with Ford and other U.S. automakers. Ford has expanded its partnership with CATL for its energy storage business.
Chinese Automakers See Opening Ahead of Summit
The announcement drew attention because it came just days before the U.S.-China summit. Hong Kong's South China Morning Post earlier reported, citing sources, that CATL, BYD and Xiaomi may be included in the economic delegation accompanying Chinese President Xi Jinping to the United States. With battery maker CATL under consideration alongside BYD and Xiaomi, which has moved into electric vehicles, the trip is being watched for what it could mean for Chinese EV and battery operations in the U.S.
The stakes grew after President Donald Trump recently said it would be "OK" for China to build auto plants in the United States as long as they employ American workers. U.S. automakers have sent a letter to Trump arguing that Chinese vehicle manufacturers and their supply chains should continue to be kept out of the country, according to reports.
China, for its part, is keenly interested in gaining access to the U.S. market, because overcapacity remains unresolved even as global battery demand surges.
Lithium-ion battery output topped 1,240 gigawatt-hours in the first half of this year, up 44% from a year earlier, according to China's Ministry of Industry and Information Technology. Production of key battery materials — cathodes, anodes, separators and electrolytes — each rose more than 50%. Output is set to expand further. More than 100 battery plants cleared approval procedures through July this year, according to the China Industrial Association of Power Sources. Those facilities can produce a combined 2,600 GWh of batteries a year, 48% more than China's 1,755 GWh of battery output last year. Chinese battery makers have been pushing aggressively into Europe and other markets, but that is not enough to absorb the snowballing volume. Chinese authorities have conducted a full survey of battery production capacity and utilization rates, and since May have suspended new approvals for plants making batteries for energy storage systems.
China held 70.4% of the global market for electric vehicle batteries last year, a dominant lead. Chinese experts expect that share to come in at 68% to 72% this year before declining, with forecasts of 60% to 68% by 2030.
