The Chinese company CATL controls 37 percent of the global market for battery cells. While the company enters into international partnerships, CATL is engaged in a price war with the competition on the domestic market. This bothers even President Xi Jinping.
Chinese battery cell giant CATL has been targeted by President Xi Jinping. The company's status as the world leader in battery cells for electric cars gives him mixed feelings, Xi said, according to the official Xinhua news agency. He is happy with the company's leadership position but concerned about the risks involved.
CATL recently offered discounts to Chinese automakers, which experts say is intended to keep smaller Chinese rivals like CALB or EVE Energy at bay. Analysts speak of a price war. CATL has also built factories abroad and recently reached an agreement with Ford to license technologies for a planned US automaker's manufacturing facility.
The Chinese group has a share of around 37 percent in the global battery cell market. His customers also include Volkswagen, BMW and Mercedes-Benz. In the past, Chinese automakers have sharply criticized CATL for its dominant position in the market.
According to Xinhua, the Chinese President spoke to CATL Chairman Zeng Yuqun on the sidelines of the annual session of the Chinese People's Congress. According to the statement released after the closed-door meeting, Xi urged balancing growth and security. Emerging industries should plan well and keep an eye on risks. "They should avoid advancing alone as if they were invincible, only to be caught up by others and end up failing."
The Xinhua report did not reveal how Zeng reacted to Xi's statements. CATL initially did not comment. The Beijing leadership has tightened control over the country's largest corporations in recent years. Stricter rules for doing business at home and abroad have been issued for a wide range of industries. CATL shares fell 1.6 percent in the market trend of China's blue-chip index on Tuesday.
