Tesla battery supplier CATL said to downplay business risks of US sanctions in meeting
- The founder of CATL said Chinese foundries are capable of producing alternative chips for the company, according to Chinese media reports
- The EV-battery maker denied rumours that it was seeking professional advice on the possibility of being subject to US sanctions
The founder of Contemporary Amperex Technology Limited (CATL) – China’s largest electric-vehicle battery manufacturer and a Tesla supplier – played down the risks of any potential US sanctions on its business in a recent meeting with analysts, according to internal memos kept by external participants that were leaked to Chinese media.
Robin Zeng Yuqun, chairman of CATL, told meeting attendees that the company currently relies on US semiconductors to build power management systems for its battery units, but added that these chips could be replaced with domestic alternatives if needed, Shanghai’s state-backed online media outlet Cailianshe reported on Tuesday.
According to minutes of the gathering filed to the Shenzhen stock exchange on Tuesday evening, Zeng said CATL purchases some of the chips for its battery management systems from the US, but it is also working to source supplies domestically, confirming the main message of the earlier report.
Zeng also said that the required chips can be produced at the 28-nanometre node, a technology that Chinese chip foundries already possess, according to Cailianshe.
This comes two days after the company issued a statement denying a slew of rumours about its business, including allegations that CATL was seeking professional opinions on the possibility of being subject to US sanctions. The manufacturer said it has filed a complaint to the police regarding “malicious rumours” that were intended to mislead the market and damage CATL’s reputation.
CATL is currently not on any US export watch list or blacklist.
