CATL Planning to Build Plant by Investing US$5bn
CATL, the world’s largest EV battery manufacturer, has declared its North American market entry. Chinese EV battery manufacturers are likely to concentrate on the market with economical LFP batteries, which are about 20 percent cheaper than high-nickel batteries.
CATL recently announced that it would release Kirin cell-to-pack batteries next month, which are characterized by moduleless and direct cell assembly in a pack and the resultant cost reduction and energy density enhancement. When it comes to EV batteries, a higher density means a longer driving range and a higher output. CATL’s LFP batteries have been lower in energy density than South Korean manufacturers’ high-nickel batteries, and the Chinese company is aiming to turn the tables with its cell-to-pack technology.
According to Bloomberg, CATL is planning to build an 80 GWh plant in North America by investing US$5 billion and Guoxuan, whose order backlog in the U.S. automotive industry is over 200 GWh, is considering building a plant in the United States. In addition, Envision AESC’s U.S. battery plant is scheduled to be put into operation in 2025 for supply to Mercedes-Benz.
This means South Korean and Chinese EV battery manufacturers will compete more than ever in the U.S. market. At present, the former are dominating the market by collaborating with GM, Ford and Stellantis. They are trying to keep ahead by accelerating next-generation battery development. For example, LG Energy Solution is working on 4680 batteries while supplying cylindrical batteries to Tesla and making co-investments with GM and Stellantis.