Western tariffs pose a ‘challenge’ for Chinese battery giant CATL
An executive at Chinese battery giant CATL said on Thursday that Western tariffs on electric vehicles are a “challenge” for the company, and also bad for customers.
Citing unfair competition, the European Union will impose heavy tariffs on Chinese-made electric vehicles by July 4, after Washington increased levies on the sector last month.
Canada suggested this week that it too could follow suit.
CATL is a major player in the market as the world’s largest producer of EV batteries and has signed agreements with car manufacturers such as Tesla, Stellantis and BMW.
“I will say this is a challenge,” said Ni Jun, CATL’s Chief Manufacturing Officer.
“I believe the tariffs are not good for consumers,” he told AFP at a World Economic Forum event in the northern city of Dalian.
“Whether you are a European consumer or an Asian consumer, we want to have affordable, high-quality products that can save the planet,” he said.
CATL has been helped by robust financial support from Beijing, which has prioritized the development of domestic high-tech industries that it sees as strategically advantageous.
“China is investing heavily in the research, development and production of lithium-ion batteries,” Ni said.
Such support is the source of complaints from Western governments about unfair competition.
Many of the vehicles affected by the tariffs are equipped with batteries from CATL, which plans to expand its operations in Europe next year.
The company is based in the Chinese coastal city of Ningde and is currently building a second European factory in Hungary.
Domestically, the company’s success has been reinforced in recent years by rapid growth in the domestic market.
Not only has China seen “a massive adoption” of personal car ownership over the past three decades, but also the establishment of “the opportunity, the whole supply ecosystem” for electric cars, Ni said.
This gave Chinese companies a huge advantage in the global shift to green transportation.
“There are already opportunities for China to act quickly,” he said.
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