China’s leading electric vehicle (EV) battery manufacturer Contemporary Amperex Technology (CATL) said it had extended its supply contract with Tesla, sending its share price up by 3% to an all-time high on the Shenzhen Stock Exchange.
In a filing to the stock exchange, CATL confirmed its existing two-year lithium-ion battery supply contract with the US EV maker, which was due to expire in June 2022, had been extended until the end of 2025.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
CATL said in a statement: “The agreement to extend the contract confirms Tesla’s acknowledgment of our product quality and production capability in power batteries and will help boost the long-term sustainable partnership between the two parties.”
Shares in CATL have surged by 58% since March, valuing the company at over CNY1trn (US$155bn), as investors recognise the huge potential growth in EV battery demand.
CATL supplies battery packs for most global automotive brands, including for the Tesla Model 3 and Model Y vehicles produced in Shanghai.
The company has invested heavily to expand battery production capacity, including CNY39bn to build three new factories in China last year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
