China's CATL, a Tesla supplier, considers expanding battery swapping business overseas

The world's largest electrical conveyance artillery shaper CATL is evaluating whether to grow its artillery swapping concern to planetary markets, a elder enforcement told CNBC.

CATL, or Contemporary Amperex Technology Co. Limited, is simply a supplier to companies specified arsenic Tesla and Ford.

In January, the Chinese artillery shaper launched its artillery swapping concern called EVOGO successful China crossed 10 cities. The purpose is to region the request for electrical cars to halt astatine recharging stations. Instead, drivers tin rent artillery packs from CATL and enactment them into the car erstwhile their different artillery runs out. This takes a substance of minutes.

Nio, an electrical car start-up successful China, besides has a rival artillery swapping program. The institution plans to grow that to gathering 1,000 artillery swapping stations extracurricular China by 2025, with the bulk successful Europe, Nio co-founder Qin Lihong, told Reuters this week.

Li Xiaoning, enforcement president of overseas commercialized exertion astatine CATL, told CNBC successful an interrogation connected Thursday, that the institution is besides evaluating enlargement of its artillery swapping merchandise into Europe.

"I would accidental this volition commencement successful China this year. We volition measurement by measurement cheque the overseas footprint of EVOGO," Li said.

"We are starting to measure the imaginable practice with galore partners. We request to recognize the item successful practice," helium added. "There are galore things we consider. Product exertion is 1 thing, different is the concern case, the regulation, the section rules, and besides different factors we request to deliberation of arsenic well."

If CATL expands the concern overseas, it could assistance overseas carmakers connection the artillery swapping services to customers without having to physique the costly infrastructure themselves.

CATL is facing challenges including the rising outgo of earthy materials similar lithium, which goes into its batteries.

But the institution inactive managed to much than treble nett successful the 2nd 4th arsenic request for electrical vehicles continues to stay strong.