Tesla supplier CATL announces deeper partnership with Volkswagen

Published 21/02/2025, 04:46
Updated 21/02/2025, 06:00
© Reuters.

Investing.com-- Chinese battery giant Contemporary Amperex Technology (SZ:300750) said on Friday that it signed an agreement with Volkswagen AG (ETR:VOWG) to cooperate further on R&D in battery technology and other components of electric vehicles.

CATL signed a memorandum of understanding with Volkswagen (ETR:VOWG_p) China, especially as the latter looks to ramp up its EV offerings in the coming years to fend off heightened competition.

CATL is the world’s biggest EV battery supplier and is a key supplier for EV major Tesla Inc (NASDAQ:TSLA). The company’s battery technology is used in more than a third of all global EVs, and it has benefited greatly from a global boom in the sector over the past few years.

CATL has plants in the U.S. and Europe, and is likely to further increase production in the two regions amid concerns over a growing trade war between Washington and Beijing.

The company- which also supplies battery technology to American automakers such as Ford- has also faced increased scrutiny from U.S. lawmakers in recent years, over its alleged ties to the Chinese military. 

CATL recently filed for a secondary listing in Hong Kong.

Volkswagen’s tie-up with CATL comes as the European carmaker grapples with heightened competition from established EV players in its biggest markets. The company has ramped up its EV offerings over the past year and plans to debut its most affordable EV in 2027. 

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