Tesla, Inc. (NASDAQ: TSLA) battery supplier CATL is reportedly considering setting up manufacturing plants in the United States.
What Happened: Ningde, China-based CATL is in the final stages of evaluating sites for constructing battery manufacturing plants in the U.S., Reuters reported, citing people with knowledge of the plans.
The world's largest battery manufacturer also plans to use the proposed sites to make EV batteries for Ford Motor Co (NYSE: F) and BMW AG (OTC: BMWYY), the report said. The Chinese company is looking at sites in South Carolina and Kentucky, where these two automakers have manufacturing plants, the report added.
CATL is planning for a production start time of 2026 in the potential South Carolina plant, Reuters said.
Related Link: Tesla, Nio Battery Supplier CATL To Launch Battery Swapping Service: Report
Why It's Important: If the plan fructifies, CATL would be following in the footsteps of smaller South Korean rivals LG Energy Solutions, SK Innovation, and Samsung SDI, which are all planning manufacturing plants in the U.S.
CATL on Thursday reported a steep drop in March quarter profit amid surging battery material prices.
Its chairman, Zeng Yuqun, reportedly said efforts are on to localize production for overseas automakers in their own countries. The company is also looking to improve its competitive position as the world's leading battery supplier, he added.
Related Link: Tesla Battery Supplier CATL Is Now The Second Most Valued Company Listed In China
Photo courtesy: CATL
