Contemporary Amperex Technology Co. Limited (CATL) CEO Robin Zeng has indicated a potential major shift in US-China battery industry relations, announcing the company’s willingness to establish a battery manufacturing facility in the United States, contingent on President-elect Donald Trump’s stance toward Chinese investment in the electric vehicle (EV) supply chain.
This announcement comes against a complex backdrop of US-China trade relations. Chinese EV and battery manufacturers have faced significant barriers in accessing the US market, with both Democratic and Republican administrations implementing protectionist measures. These restrictions, which began during Trump’s first term in 2017, were implemented due to concerns about competition from heavily subsidized Chinese companies and national security considerations.
The current landscape under the Biden administration has maintained a restrictive environment for Chinese investment. Recent developments include a proposed ban on Chinese-connected vehicles and a Republican-sponsored bill aimed at limiting subsidies for US manufacturers using Chinese batteries, though the latter was blocked by the Biden administration.
However, Trump’s recent statements have suggested a possible shift in approach. In an August interview, he expressed openness to Chinese investment, stating, “We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers.” This potential policy shift, combined with Elon Musk’s anticipated role in the new administration, could create favorable conditions for CATL’s US investment plans.
The relationship between CATL and Tesla adds another layer of complexity to the situation. While the companies have announced collaborative plans for a US battery factory, Zeng has been notably critical of some of Tesla’s technical decisions. Particularly, he questioned Tesla’s commitment to the 4860 format battery cell, stating, “He doesn’t know how to make a battery. It’s about electrochemistry. He’s good for the chips, the software, the hardware, the mechanical things.”
CATL’s global expansion strategy is evident in their recent activities, including plans for a battery cell factory in Indonesia and the development of a battery-swapping network in China. Zeng’s statement, “Originally, when we wanted to invest in the U.S., the U.S. government said no. For me, I’m really open-minded,” reflects both past frustrations and current willingness to engage with the US market under the right conditions.
