Chinese battery giant CATL has teamed up with American electric vehicle pioneer Tesla to explore fast-charging batteries to support the latter’s efforts to retain its market dominance, Bloomberg reports.
CATL and Tesla to explore new battery chemistries
As mentioned, the new collaboration between the two major industry players will enable Tesla to defend its electric vehicle market share. It will also pave the way for a sub-$25,000 Tesla car.
CATL is working with Tesla on new battery chemistries, particularly electrochemical structures, to enable faster charging and cut costs. However, CATL’s Chief Executive omitted from elaborating on the ongoing development.
“There’s always room for cost reduction depending on what the $25,000 car’s aim is. If it’s for robotaxis, we don’t have to worry about the cost reduction for each cell as our batteries have a longer life cycle and so their average cost is actually lower.”
CATL Chairman Robin Zeng said in an interview in Hong Kong on Monday
CATL supplies machinery to Tesla’s Nevada factory
Apart from the battery development, CATL CEO Zeng also announced that the Chinese battery giant is supplying machinery to Tesla’s Gigafactory Nevada.
For context, Tesla is expanding its battery production in the state to support its electric vehicle production ramp-up. It reportedly opened a small facility with idle equipment from CATL.
Giga Nevada expansion
Earlier this year, Tesla kicked off the $3.6 expansion of its Gigafactory Nevada in the United States. This project will reportedly increase the factory’s manufacturing space by another 4 million square feet.
Tesla plans to establish two new facilities in the new manufacturing space for the production of the Semi electric truck and 4680 battery cell.
Tesla’s partnership with CATL for a new battery technology will enable the American electric automaker to improve the fast-charging capabilities of its electric vehicles. It will also aid Tesla in focusing on cost reduction amid the high interest rates that affect its sales.
