CATL open to U.S. expansion if Trump eases Chinese investment restrictions

The world's leading battery manufacturer, CATL, which wants to build an American EV supply chain that's free of its Chinese rivals, could join President-elect Donald Trump by building a U.S. plant if he lessens restrictions on Chinese investment, said Chinese glass billionaire Robin Zeng in an exclusive interview with Reuters. Under the right conditions, Zeng said he was willing to enter the U.S. market, but previous attempts at investing had been blocked by trade barriers.

Constraint by stringent trade restrictions, including national security and competitive concern, the U.S. has curbed it on Chinese EV and battery manufacturers. These laws, equally backed by Democrats and Republicans, essentially cut off the market to Chinese firms like CATL and BYD for batteries or EVs sold in the U.S. Chinese-made batteries don't qualify for the U.S. consumer EV subsidies introduced by the Biden administration, and Chinese EV imports are subject to a 100 percent tariff, or a de facto ban. But a Republican-backed bill would additionally curb EV purchase incentives for cars packed with Chinese battery tech.

But Trump has given the sign that he is open to letting Chinese companies set up factories here, so long as they create American jobs. In an August interview, Trump said companies that built plants in America and employed American workers would get incentives, saying if companies didn't do those things, 'we're going to shut that stuff down.' Zeng has kept himself interested in a possible U.S. expansion for CATL with this approach.

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CATL currently only has licensing deals in the U.S. for now. CATL is also preparing to open a Michigan plant to produce the lithium phosphate batteries for the new Mustang Mach-E and F-150 Lightning EV models, said Ford. CATL’s technology will also be used by Tesla to produce a battery factory in Nevada beginning in 2025.

Zeng, who frequently communicates with Tesla CEO Elon Musk, shared insights on Musk’s strategic focus on artificial intelligence and autonomous driving technology. Despite this alignment, Zeng expressed skepticism about Tesla’s cylindrical battery design, known as the 4680, predicting it would ultimately be unsuccessful. He also mentioned Musk’s tendency to set ambitious, sometimes unrealistic timelines to push Tesla’s workforce, a tactic that has drawn skepticism from investors.

As CATL eyes the potential for U.S. expansion, its entry will likely depend on whether Trump’s policies ultimately facilitate a more welcoming environment for Chinese investment in the American EV sector.