CATL Confident in US Indirect Entry... "GS Like Operating Intercontinental Hotel"

At the SNE Research 'KCAB 2024' Seminar on the 24th

John H. Kwon, Director of CATL, is presenting at the KCAB 2024 seminar held on the 24th at the Korea Science and Technology Center in Gangnam-gu, Seoul. Photo by Donghoon Jung

Chinese battery company CATL expressed confidence in circumventing the Inflation Reduction Act (IRA), which restricts Chinese companies' entry into the U.S. market. They plan to share battery production licenses and know-how with local automakers and supply CATL-branded batteries in the U.S.

On the 24th, John H. Kwon, CAL Director, explained at the 'KCAB 2024' seminar held at the Korea Science and Technology Center in Gangnam-gu, Seoul, "The model CATL has adopted to sell batteries in the U.S. market is LRS (License·Royalty·Service)," adding, "Customers like Ford, GM, or Tesla actually build and manufacture the factories, but CATL provides the factory design, know-how, and technology for production."

He compared it to the way GS Group operates hotels in collaboration with Intercontinental. Director Kwon said, "If you think about the Intercontinental Hotel in Gangnam, the hotel name and services come from Intercontinental, but ownership is with LG (currently GS Retail). If a group that has never been in the hotel business wants to operate a five-star hotel, they must collaborate with a hotel group like Intercontinental to share design, in-house restaurants, and hotel services."

Earlier, U.S. automakers Ford and General Motors (GM) decided to produce LFP (Lithium Iron Phosphate) batteries locally in the U.S. through a technical partnership with CATL.

CATL continues to develop its strong LFP battery technology. Director Kwon stated, "Competitors have not invested much in LFP batteries, but we have invested a lot," adding, "LFP batteries are safer and more affordable." This year, CATL introduced the new LFP battery 'Xensing Plus,' announcing features such as a driving range of 1000 km and the ability to drive 600 km after a 10-minute charge.

However, regarding the all-solid-state battery planned for mass production in 2027, he said, "It might take a little more time."

This content was produced with the assistance of AI translation services.