Chinese power battery giant Contemporary Amperex Technology Co Ltd has engaged in discussions with approximately twelve carmakers regarding technology licensing partnerships, aiming to cement its leading position in the global power battery market.
According to a recent statement to CnEVPost by a CATL spokesperson, the company has been exploring an LRS (License Royalty Service) model of cooperation with these OEMs (original equipment manufacturers). Under this partnership model, CATL offers technology licensing, plant construction, and operation services, enabling global OEMs and even competitors to rapidly acquire battery production capabilities.
The spokesperson highlighted the mutual benefits of the LRS model, stating, “Car companies gain access to technology and learn to make batteries, while CATL gains access to new revenue models and more advanced forms of expanding its presence overseas.” Moreover, CATL emphasizes that its technology licensing to competitors ultimately benefits consumers worldwide.
CATL, a key supplier to electric vehicle (EV) makers such as Tesla and Nio, retains its position as the world’s largest producer of power batteries. With an installed battery volume of 259.7 GWh in 2023, CATL commands a market share of 36.8 percent, remaining the sole battery supplier globally with a share exceeding 30 percent, according to SNE Research, a South Korean market researcher.
In overseas markets, particularly the US, CATL is strategically navigating a complex regulatory environment by forging partnerships with automotive giants to establish battery plants. Ford (NYSE: F) recently announced a $3.5 billion investment in a lithium iron phosphate (LFP) battery plant in Marshall, Michigan, slated for production in 2026.
Furthermore, Chinese media outlet LatePost reported on March 28 that CATL is in discussions with General Motors for an LRS model partnership, aiming to jointly construct an LFP battery plant in North America. Regarding the Ford plant in Marshall, the CATL spokesperson affirmed that it is currently in the advanced stages of development.
