CATL is the world’s largest producer of batteries for electric vehicles and a supplier to companies such as Tesla and Ford.

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The world’s largest electric vehicle battery maker CATL is considering expanding its replacement battery business into international markets, a senior executive told CNBC.

CATL, or Contemporary Amperex Technology Co. Limitedis a supplier to companies such as Tesla and Ford.

In January, the Chinese battery maker launched a battery replacement business called EVOGO in 10 cities across China. The goal is to eliminate the need for electric vehicles to stop at charging stations. Instead, drivers can rent battery packs from CATL and put them in the car when their second battery dies. It takes a few minutes.

Nio, an electric car startup in China, also has a competing battery swap program. The company plans to expand that and build 1,000 battery-swapping stations outside of China by 2025, with the majority in Europe, Nio co-founder Qin Lihong said. Reuters this week.

Li Xiaoning, executive president of CATL’s overseas commercial applications division, said in an interview with CNBC on Thursday that the company is also evaluating the expansion of its battery replacement product in Europe.

“I would say it will start in China this year. We will check EVOGO’s foreign footprint step by step,” Lee said.

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“We are starting to evaluate the potential of cooperation with many partners. We need to understand the details in practice,” he added. “There are a lot of things that we take into account. The technology of the product is one thing, the business case is another, regulation, local regulations, and other factors that we have to think about as well.”

If CATL expands overseas, it could help foreign automakers offer battery replacement services to customers without having to build expensive infrastructure themselves.

CATL faces challenges, including the rising cost of raw materials such as the lithium that goes into batteries.

But the company still managed to more than double its profits in the second quarter as demand for electric vehicles remains strong.

https://www.cnbc.com/2022/09/23/tesla-supplier-catl-evaluating-battery-swapping-business-overseas.html

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