CATL Focuses on Licensing Model for U.S. and European Battery Markets

Contemporary Amperex Technology Co., Limited (CATL), led by founder and CEO Robin Zeng, is expanding its presence in global electric vehicle battery markets through technology licensing agreements instead of direct factory ownership in the United States and Europe.

This approach allows CATL to provide battery technology and production expertise to automakers, while partners such as Ford and General Motors manage the construction and operation of manufacturing facilities.

Ford is building a lithium-iron phosphate battery plant in Michigan using CATL technology under a licensing arrangement, and General Motors is in discussions with CATL regarding a similar agreement for a North American plant. In these arrangements, CATL supplies technology and services but does not take equity in the facilities.

Robin Zeng stated that CATL is engaged in talks with more than a dozen automakers in Europe and the U.S. about potential technology licensing partnerships. He also said that previous efforts to build a factory in the U.S. were not approved due to policy restrictions on Chinese investment in the electric vehicle supply chain.

What the numbers show

• CATL’s battery production capacity reached 676 GWh by the end of 2024
• An additional 219 GWh of capacity was under construction at that time
• This total capacity could supply batteries for about 9 million EVs with a 500 km range

According to Robin Zeng, the cost of constructing a battery factory in the United States is about six times higher than building a similar facility in China. This cost difference is a factor in CATL’s preference for licensing its technology rather than investing directly in U.S. manufacturing plants.

CATL’s licensing model enables automaker partners to handle capital expenditures and facility operations, while CATL earns revenue from licensing and service fees. This strategy is being pursued in both the U.S. and European markets as the company seeks to expand its international footprint.

Robin Zeng said that all CATL battery factories are expected to achieve carbon neutrality in 2025, with a goal of reaching full carbon neutrality across the battery supply chain by 2035. This environmental target is part of the company’s broader operational strategy.

CATL remains the world’s largest electric vehicle battery manufacturer, supplying technology to major automakers including Ford, Tesla, BMW, Mercedes-Benz, and Volkswagen. The company continues to prioritize technology licensing as a means of supporting global automakers while navigating regulatory and economic considerations in different regions.

* This article is based on publicly available information at the time of writing.