A major Chinese battery manufacturer is looking to take its business to North America, as per a report by Bloomberg. It was reported late Friday night that Contemporary Amperex Technology Co Ltd of China, whom is better known in the industry as CATL, is considering locations for a massive facility somewhere on the continent.
The firm is reportedly exploring potential manufacturing sites in Mexico, the United States, as well as Canada as it looks to build the facility that is pegged to cost approximately $5.0 billion. Evidently the company is currently leaning towards Mexico as its country of choice, citing concerns related to trade issues as well as the availability of labor. The facility is expected to employ approximately 10,000 people once it is fully operational.
In terms of production capacity, current designs are said to call for 80 gigawatt-hours worth of battery production per year. The batteries are currently earmarked to supply automotive manufacturers that include Tesla (NASDAQ: TSLA), given that the manufacturer already uses CATL battery packs at its China facility.
The facility is expected to produce both lithium iron phosphate, or LFP, batteries, which are already used by Tesla, as well as nickel-manganese-cobalt cells. Globally, the company also supplies materials to Stellantis, Daimler, and BMW among other vehicle manufacturers, and the new facility appears to be keen on supplying multiple manufacturers.
Further details on the current sites being evaluation or the expansion in general were reportedly not provided.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
