Tesla supplier CATL evaluating battery swapping business overseas

CATL is the world’s largest manufacturer of electric vehicle batteries and suppliers to companies such as Tesla and Ford.

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CATL, the world’s largest electric vehicle battery maker, is evaluating whether to expand its battery replacement business into international markets, a senior executive told CNBC.

CATL, Or the modern Amperex Technology Co. LtdSupplier to companies like Tesla and Ford.

In January, the Chinese battery manufacturer launched its battery replacement business called EVOGO in 10 cities in China. The aim is to eliminate the need for electric cars to park at recharging stations. Instead, drivers can rent battery packs from CATL and keep them in the car in case the other battery runs out. This will take a few minutes.

Neo, an electric car start-up in China, also has a competitive battery swapping program. The company plans to build 1,000 battery transfer stations outside of China by 2025, with the majority in Europe, Neo co-founder Qin Lihong said. Reuters This week.

Li Xiaoning, executive head of CATL’s overseas business application, told CNBC on Thursday that the company is also evaluating expanding battery replacement production in Europe.

“I would say it will start in China this year. We will gradually check EVOGO’s overseas footprint,” Li said.

Read more about electric vehicles from CNBC Pro

“We are starting to evaluate possible collaboration with multiple partners. We need to understand the details of the process,” he added. “There are many things we have to consider. Product technology is one, business case is another, regulation, local rules and other factors we have to think about.”

If CATL expands business overseas, it can help foreign car makers provide battery replacement service to customers without building expensive infrastructure.

CATL faces challenges including rising prices of raw materials like lithium that go into its batteries.

But as demand for electric vehicles continues to be strong, the company still doubled profits in the second quarter.

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