CATL Under Fire: The U.S.-China Geopolitical War's Latest Target

Every week, the battery landscape shifts in fascinating ways — this one is no different.

Welcome back to another edition of my newsletter!

This week, we continue our exploration of the fast-evolving battery industry, where new developments are constantly shaping the future of energy.

It was another busy week for the battery industry.

I'm thrilled to bring you valuable insights and the latest updates!

Summary

• The Highlight of the week: CATL was added to a U.S. list for alleged ties to China’s military.

• Battery Industry Pulse: Weekly Roundup.

The Highlight of the week: CATL under scrutiny by the U.S government

The geopolitical war between China and the USA has reached another level in the battery industry.

The US Department of Defense has added CATL to a list of firms it alleges work with China’s military, potentially affecting their reputations and commercial progress.

CATL said in a statement that “it has never engaged in any military-related business or activities, so this designation by the Department of Defense is a mistake.” - Source Reuters

The list itself doesn't immediately impose sanctions or restrictions. It serves as a warning.

U.S. companies may hesitate to collaborate or purchase from CATL.

CATL is the world's leading battery producer and a large supplier for Tesla. The Chinese company supplies LFP batteries to Tesla. The batteries are used for Tesla‘s EVs in China for the domestic market and exports (Canada and Europe). It has limited use in the U.S.

CATL batteries are already playing a key role in the rapidly growing U.S. Energy Storage System (ESS) market. Among the available options, LFP batteries stand out as the best fit for ESS needs, thanks to their very good cycle life—a critical factor for ESS integrators.

According to Citi estimates, the U.S. market accounted for 35% of CATL's ESS batteries in 2023.

CATL could face a slowdown in its growth within the U.S. market, potentially putting three major battery plant projects in jeopardy:

• Tesla and CATL are exploring a potential licensing agreement for the Chinese company’s technology in Nevada. Tesla is currently expanding its battery production facility.

• In 2023, Ford revealed plans to invest $3.5 billion in a battery production facility in Michigan, leveraging CATL technology. However, the project has hit a major roadblock, facing political challenges that have put it on hold. Now, its future appears increasingly uncertain, with the possibility of being shelved permanently.

• General Motors is reportedly planning to purchase LFP batteries using technology from CATL. The Japanese company TDK Corp will finance and operate a new plant in the United States.

The EV and battery industry face a new wave of uncertainty.

Now, let’s look at this week's battery market developments.

Battery Industry Pulse: Weekly Roundup

Metals

• Chinese copper and gold producer Zijin Mining Group is in talks to buy a $6.4 billion China lithium miner - link

• China’s Ministry of Natural Resources announced the measured and indicated lithium reserves in the country have increased significantly, rising from sixth to second place worldwide - link

Battery

• ProLogium introduced its 4th generation lithium ceramic battery (LCB) system at CES 2025 - link

• Yadea released the first electric scooters with sodium-ion batteries - link

• CATL has signed an agreement with SAIC Motor to cement their strategic collaboration to develop battery products - link

• Volvo Group sees delay in battery plant production from planned Swedish facility - link

• LG Energy Solution signs battery cell supply agreement with Aptera - link

• Novacium has entered into a strategic collaboration with the French Army to develop high-capacity batteries with silicon-based materials - link

• Mazda will build a new module pack plant for cylindrical lithium-ion battery cells in Japan - link

• Samsung Electro-Mechanics eyes mass production of solid-state battery for wearable devices in 2026 - link

• Lucid Gravity Grand Touring will be powered by Panasonic Energy’s lithium-ion EV battery cells - link

• Panasonic Energy seeks to reduce its reliance on Chinese resources - link

• Svolt unveiled the Fengxing Short Blade Battery - link

• SES AI unveiled an entirely new AI-enhanced 2170 cylindrical cell for emerging humanoid robotics applications - link

BESS

• Envision Energy India has secured an order from Juniper Green Energy for the supply of 320MWh battery energy storage systems - link

Battery recycling

• Ace Green Recycling announced it has finalized a lease agreement for a site to build India's largest battery recycling facility - link

Passenger EVs

• Tesla unveils Model Y Juniper - link - Tesla China.

• Mahindra has opened a new EV production and battery assembly facility in India - link

• Rolls-Royce Motor Cars has announced an investment of over £300 million to expand its Goodwood manufacturing facility. It will prepare the brand for its transition to all-battery electric vehicles - link

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