CATL explores new EV battery services and will add capacity

BEIJING -- China's top electric vehicle battery maker, Contemporary Amperex Technology, is exploring new battery-related services and will expand manufacturing capacity in the next two years, its chairman told Reuters.

Ningde-based CATL, which alongside LG Chem and Panasonic is one of the biggest EV battery makers globally, is developing battery-swapping and battery maintenance services, chairman Zeng Yuqun said on Wednesday.

It will also expand recycling capabilities in China and invest in similar businesses overseas, Zeng added in a written response to Reuters questions.

The company, which has signed supply deals with Tesla Inc. and Volkswagen Group, expects to increase battery manufacturing capacity in the next two years, Zeng said.

It may target further overseas expansion based on customer demand, he added. The company is building an EV battery plant in Germany.

Zeng said CATL will control costs to better manage the impact from the coronavirus pandemic. He did not offer details.

As the virus hit demand in China, the world's biggest auto market, sales of new energy vehicles, which include EVs as well as plug-in hybrid and hydrogen fuel-cell vehicles, fell 43 percent in the first four months this year compared to a year earlier.

Reuters reported in February that Tesla is in advanced talks to use lithium iron phosphate batteries from CATL. Sources said this month Tesla and CATL are developing next generation batteries which would have significantly longer lifespans.