The U.S. Department of Defense just added the world’s largest electric vehicle battery supplier to its naughty list, according to its official release. On Monday, the DoD officially published its latest blacklist of “Chinese military companies” operating directly and indirectly in the United States and Contemporary Amperex Technology Co. Limited, better known as CATL, is on that list.
According to the agency’s press release, the blacklist designates any Chinese-based company with ties to its government as a threat to U.S. national security under Section 1260H of the National Defense Authorization Act of 2021. CATL manufactures and supplies electric vehicle batteries to Tesla, BMW, Daimler AG, Honda, Hyundai, PSA, Toyota, Volkswagen, and Volvo. And its list of clients isn’t limited to those, as a significant portion of China’s domestic EV manufacturers also get their batteries from CATL.
This Could Hugely Affect Electric Vehicles Worldwide
Based in Ningde, Fujian, China, CATL was established in 2011 and has since been one of the key suppliers of large-application lithium-ion battery packs for electric vehicles and large electricity storage arrays. It’s also a developer and manufacturer of battery management systems and has since grown to be the largest battery manufacturer in the world. As of 2023, the company has a global market share of roughly 37-40% and is worth around $101 billion in total assets. According to its own statistics from a report in December 2024, CATL also holds nearly a 63-percent market share in the premium electric vehicle market, having supplied nearly 2.22 million cars thus far.
Although specifics as to how this could affect the electric vehicle industry haven’t been detailed, some analysts suggest that it’s part of a larger effort by the
and could be the backbone for the sanctions and tariffs that it’s campaigning for. Trump himself has been threatening up to a 60% tariff on all Chinese goods while on his election campaign trail.
However, this latest blacklist is one of the most recent efforts by the current and outgoing Biden Administration, who already started punishing Chinese-based imports for concerns over national security. Recently, Biden and his constituents placed a 100-percent tariff on Chinese-made electric vehicles, while one of his administration’s latest proposals suggests banning Chinese-sourced automotive software from being used in cars sold on U.S. shores.
CATL is the largest supplier of batteries for Tesla. Other automakers also recently signed more agreements with the battery manufacturer as they all continue ramping up their electrification efforts. Some notable cars made with CATL batteries and sold in the U.S. include the all-electric Mercedes-Benz Gelandewagen, the Lotus Eletre, the BMW i7, the Rolls-Royce Spectre, and the Maserati GranTurismo Folgore.
A day after the DoD’s announcement, CATL responded with an official press release:
“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. We will proactively engage with DoD to address the false designation, including legal action if necessary, to protect the interests of our company and shareholders as a whole.”
Other Companies Also Supply Battery EVs, But Not As Much As CATL
Other battery suppliers do exist, but CATL still holds the largest market share. Directly behind CATL is another Chinese supplier, BYD/FinDreams, which also doubles as an EV manufacturer. Korea-based LG Energy Solution sits as the third-largest supplier, while Panasonic, a Japanese-based electronics company, is the fourth-largest.
While some of the other top EV battery suppliers are from companies based in countries that are considered allies with the United States, the majority of the world’s EV suppliers are Chinese. Of the top 10 EV battery manufacturers, seven are based in China. This shouldn’t come as a surprise since automakers around the globe noted China’s rapid electric vehicle growth and tech advancements over the past several years. Since China’s huge electric vehicle boom, many have put Chinese-based EV automakers on pedestals as the leading competition in the space.
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