From Bloomberg, January 6:
CATL’s Outsized Share of World’s EV Cell Market Highlights Risks
It’s hard to overstate the reach CATL has in the world’s electric car market.
Contemporary Amperex Technology Co. Ltd., as the company is formally known, ranks among the biggest Chinese firms to ever be blacklisted by the Pentagon.
But it’s its extensive presence across automobile supply chains that has the potential to severely upset the world’s car industry should automakers have to find an alternative.
About one in three electric cars have a CATL battery under their hood. As the industry’s dominant supplier, it’s little wonder some may feel nervous now CATL is in the spotlight after being cited by the US Defense Department for alleged links to the Chinese military.
Other companies now in that basket include gaming giant Tencent Holdings Ltd.
Read more: US Adds Tencent and Tesla’s China Battery Maker to Blacklist
While the designation only impacts each company’s ability to supply to the US military, there’s the tough to quantify — and more problematic — reputational hit.
Ningde, Fujian-based CATL has a who’s who of global automakers as its customers, stretching from Elon Musk’s Tesla Inc. to Ford Motor Co., Volkswagen AG, Stellantis NV and Japan’s Honda Motor Co.
In a statement, CATL said it’s a “mistake for the US Department of Defense to include CATL on a list of Chinese military companies operating” in the US. It added it’s not engaged in any military-related activities besides.
The move by the Defense Department came after Republican lawmakers pushed the US government to add CATL to its blacklist in August last year.
CATL’s market share in 2024 was about 37%, well ahead of Chinese rival BYD Co. at 17%, which considering it also makes cars, predominantly supplies itself. Between the two, they’re responsible for over half of the global EV battery market....
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Always, always be aware of the political nature of alt-energy/green investing. And attempt to incorporate the worldview of our first inductee into the Climateer Investing Hall of Fame into your investment matrix:
...This stuff is all political and investors must keep an ear to the political ground or risk tremendous losses. There are only two viable approaches to rentseeking investing and politicians, buy 'em or play 'em.
We must have the mindset of the first recipient of the prestigious Climateer Investing "Our Hero" award, the 26th Secretary of War and Democrat and Republican (!) Senator from Pennsylvania.
I'll close with my standard quote, from Simon Cameron.
From our post on biofuels, March '07:
Finally for investors in rent-seeking organizations there is the real risk that the politicians will change the rules. Heed the words of Sen. Simon Cameron (R&D!-Pa.):
Our Hero
That's an April 2009 iteration of the boilerplate in "RENEWED ENERGY: Solar Seeks Special Place in Climate Bill (Rentseeking to the Fifth)".