In Depth: U.S. Tensions Could Sap Chinese EV-Battery Makers’ Global Ambitions

World leader CATL and its peers face policy headwinds in the West that could benefit South Korean, Japanese rivals

Contemporary Amperex Technology Co. Ltd. (CATL) president Robin Zeng Yuqun was one of a handful of heavy hitters Tesla Inc. CEO Elon Musk met when he visited China last week for a whirlwind two-day tour.

No details were given of Musk’s discussion with the Chinese battery magnate, but the meeting underscored the importance of the world’s largest electric vehicle (EV) battery-maker — and key Tesla supplier — to the burgeoning global industry.

The race to electrify transport and phase out polluting fossil fuels is underpinned by the batteries that power EVs, most of which are lithium-based. East Asian firms have long dominated their development and production — first Japan and South Korea, and now China, with leading mainland firms holding about 60% of the global market today.

Ningde-based CATL has been the world’s No. 1 EV battery supplier for several years. In 2022, it made about two out of every five of the batteries that wound up in electric cars, according to South Korea-based SNE Rese…