CATL, Tesla's Battery Supplier, Faces Security Concerns from Washington

CATL joins other Chinese firms, like Tencent, on a list linked to the Chinese military. While no restrictions have been placed on these companies yet, the designation might discourage U.S. businesses from collaborating with them.

Tesla’s U.S. operations are unlikely to be affected as CATL primarily supplies Tesla’s Gigafactory in Shanghai, which exports vehicles to Europe and Canada, not the U.S. However, Tesla and CATL have reportedly discussed licensing CATL technology for Tesla's Nevada battery production facility.

Ford plans to use CATL technology at its upcoming battery plant in Michigan, and General Motors is also considering CATL for its battery production.