The head of the world’s largest electric vehicle battery manufacturer has warned that the United States may struggle to scale its EV industry without access to Chinese battery technology. Robin Zeng, chairman of Contemporary Amperex Technology Co. Limited, said current trade restrictions could slow long-term growth in the American electric vehicle market.
Zeng’s comments come amid ongoing US efforts to limit Chinese involvement in its EV supply chain through tariffs and regulatory barriers. Despite these measures, he argued that cost and technology gaps remain significant, particularly in battery production, which is central to EV affordability and adoption, he told The Wall Street Journal.
CATL has established itself as a dominant player in the global EV ecosystem, with estimates suggesting that roughly one in three electric vehicles sold worldwide uses its batteries. The company reported record profits exceeding $10 billion in 2025, even though it has limited direct access to the US market. EV adoption in the United States continues to trail levels seen in China and parts of Europe, where battery supply chains are more developed.
Despite political and regulatory barriers, several US automakers are already engaging with CATL technology through indirect arrangements. Ford Motor Company has shifted its battery strategy to incorporate CATL-designed lithium-iron-phosphate, or LFP, batteries at a planned facility in Michigan. The arrangement involves licensing CATL’s intellectual property rather than direct manufacturing by the Chinese firm.
Industry executives have acknowledged the gap in domestic capabilities. A senior Ford executive previously indicated that developing comparable LFP battery technology independently could take years, highlighting the challenge US manufacturers face in achieving cost competitiveness.
General Motors has also adopted CATL-sourced LFP batteries for its upcoming 2027 Chevrolet Bolt, currently importing them from China under tariff conditions. The approach allows the company to maintain lower vehicle costs while working toward future domestic production. However, the continued reliance on imported batteries underscores constraints in scaling local manufacturing.
Tesla has similarly incorporated CATL technology into its energy storage operations, including facilities in Nevada. These collaborations reflect a broader pattern in which US firms access Chinese battery expertise without direct market entry by Chinese manufacturers.
The debate over CATL’s role in the US reflects broader tensions between industrial policy and supply chain efficiency. Critics argue that allowing deeper Chinese participation could hinder the development of domestic competitors, while proponents contend that access to established technology is necessary to accelerate EV adoption and reduce costs.
Zeng suggested that current restrictions may not be permanent, pointing to the possibility of policy shifts later in the decade. He indicated that commercial considerations could eventually outweigh political concerns, particularly as demand for affordable EVs increases.
The discussion also extends beyond passenger vehicles. Battery technology is a critical component in areas such as grid-scale energy storage and autonomous transportation systems, both of which depend on cost-effective and reliable power sources.
As the global transition toward electric mobility continues, the balance between domestic manufacturing goals and international supply chain integration remains a central issue for policymakers and industry leaders in the United States.
