CATL co-founder says investing in Northvolt is not a priority

Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest electric car battery manufacturer, has no intentions of investing in struggling Swedish rival Northvolt AB, co-founder Pan Jian said in an interview with Frankfurter Allgemeine Sonntagszeitung.

CATL co-founder says investing in Northvolt is not a priority

“Investing in Northvolt is not a priority for us,” Pan told the German newspaper in an interview published on Saturday. However, he noted, “There is still a possibility that we could assist them on the production side.” The two companies had discussed a licensing agreement similar to CATL's partnership with Ford Motor Co. in recent months, Pan revealed. This was before CATL became fully aware of Northvolt’s dire financial condition. “We didn’t know they were in such financial trouble,” Pan said. “If Northvolt had approached us a year or two ago, it would have been easier, as they were financially stable then.”

CATL remains open to helping European companies in need of its support, Pan added

Northvolt, the Swedish battery maker, filed for bankruptcy protection in the U.S. last week after failing to secure rescue funding. Outgoing CEO Peter Carlsson had earlier stated that potential collaborations in Asia were among the options considered to resolve the company’s financial crisis. Pan also highlighted that CATL is steadily increasing its market share in Europe, surpassing its Japanese and South Korean competitors. The company is planning to expand its production footprint in Europe, with new facilities under development in Hungary and the German state of Thuringia. “We will announce more on this soon,” Pan said. “We want to be an integral part of the global supply chain.”