This step is referred to as an effort to bring them closer to their electric battery users such as Ford and BMW. Currently, CATL controls 35% of the world’s electric vehicle battery market.
The Ningde, Fujian-based company is increasing production and securing a supply of mineral resources to meet growing demand for electric vehicle batteries.
Consulting firm Wood Mackenzie said CATL, with its current capacity, could triple its battery production by 2025.
The investment move by CATL comes as the US government rolls out measures to encourage EV investment and other Asian battery makers prepare to build US factories.
Earlier this month, the US government announced funding of $3.1 billion to make electric vehicle batteries. This is President Joe Biden’s strategy to strengthen US energy independence and increase sales of electric cars.
In addition to CATL, other Asian companies that have announced plans to build electric vehicle battery factories in the US include LG Energy Solution Kore, SK Innovation, and Samsung SDI (006400.KS). Japan’s Panasonic Corp. is also reportedly looking to buy land for a factory to service Tesla.