China’s power battery giant CATL considering sites in Mexico – report
STOCKS
China’s power battery giant CATL considering sites in Mexico – report
STOCKS

China’s power battery giant CATL considering sites in Mexico – report

 

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Chinese power battery giant Contemporary Amperex Technology Co Ltd is considering at least two locations in Mexico for a manufacturing plant that could potentially supply Tesla and Ford, according to a Bloomberg report on Monday.

CATL is considering Ciudad Juarez, Chihuahua, and Saltillo, Coahuila, both near the Texas border, and it’s considering investing as much as $5 billion in the project, the report said, citing people familiar with the matter.

The company is also considering splitting its investment between two locations – one in the US and the other in Mexico and a final decision has not been made, it added.

The CATL site would help Mexico consolidate its role in the region’s electric vehicle production, which has long been a major part of the auto industry’s supply chain, per the report. The company could choose to produce battery cells in Mexico and then ship them to Kentucky to be assembled into battery packs. In 2020, CATL bought a former RR Donnelley & Sons Co printing plant in Glasgow, Kentucky, and set up a subsidiary in the state, the report said.

CATL is the world’s largest power battery maker, with a 35% global market share in Q1 this year, followed by LG Energy Solution with 15.9% share, according to Seoul-based SNE Research. In China, CATL grabbed a 49.6% market share, according to the China Automotive Battery Innovation Alliance.