CATL, the Chinese EV battery manufacturer, is attempting to strike up a deal with Tesla Inc (NASDAQ:TSLA, ETR:TL0) and other unnamed automakers to license its technology in the States, reports revealed.
Details on the scale of the deal and what technology would be licensed are still being discussed and parts are expected to be based on Tesla’s cash flow.
Ford Motor signed a partnership with CATL back in November, promising to scale back its investment in its Michigan battery plant and instead produce low-cost batteries based on the Chinese group’s technology.
Tesla and other automakers are expected to follow a similar model if they agree to a deal.
CATL’s plans come as a slowdown in EV demand sweeps across the globe, with US lawmakers looking to shore up legislation to prevent China-produced minerals and Chinese companies from winning EV vehicle tax credits.
On Monday, Lucid, the luxury EV maker, saw its shares pop 8.5% after revealing it is set to receive US$1 billion from the Saudi Arabian Public Investment Fund (PIF).
The PIF investment provides a key boost for the electric vehicle manufacturer, with many EV startups struggling for survival.
Earlier this month, reports revealed Fisker, the EV startup, was nearing bankruptcy, leading to the company issuing a statement in which it said it developing a “strategic partnership with a large automaker.