CATL, the world’s largest battery manufacturer, has been added to a long list of enterprises, which the US Department of Defense is scrutinising to clarify whether they have any connections to the Chinese military. CATL has threatened possible legal action.
Others include Huawei, ZTE, TikTok and Xiaomi – and the list of Chinese companies from many different areas subject to US government sanctions is growing.
In a statement, CATL said: “We became aware that the US Department of Defense (DoD) had designated CATL as a ‘Chinese Military Company’ on January 7, 2025. CATL has never engaged in any military-related business or activities, so this designation by the Department of Defense is a mistake. It does not restrict CATL from conducting business with entities other than DoD and is expected to have no substantially adverse impact on our business.”
The allegation against CATL is part of the geopolitical tension between the US and China. It is well known that CATL is one of the leading suppliers of LFP batteries to Tesla. The batteries are used for Tesla’s EVs in China for the domestic market and exports (Canada and Europe).
It has limited use in the US. However, Tesla and CATL are exploring a potential licensing agreement for the Chinese company’s technology in Nevada. Other US manufacturers such as Ford and GM have already established cooperation with CATL, buying LFP battery production technology for their plants in the US.
CATL added: “We will proactively engage with the DoD to address the false designation, including legal action, if necessary, to protect the interests of our company and shareholders as a whole.”
Xiaomi, the Chinese consumer technology company, challenged its listing as a military company in court. A US judge struck the listing down as “arbitrary and capricious” after finding that the “required rational connection—or any connection” between the evidence the Defense Department provided and its conclusion that Xiaomi should be designated as a Chinese military company was lacking.
CATL continues to develop its product range with two swappable models, #20 and #25. The Choco-Swap ecosystem marks a historic step toward the standardisation of electric vehicle battery swapping. “We will continue to promote the standardisation of battery swapping, with the key being the standardisation of battery dimensions,” said Robin Zeng, founder, chairman, and CEO of CATL.
Photo: Battery swap station. CATL