Mainland China’s largest battery manufacturer CATL is currently in discussions to establish research and development centers in Hong Kong to develop new technologies that can be licensed in the overseas markets within the automotive industry, according to a news report published by the news agency Reuters on March 4.

The report cited CATL Chairman Robin Zeng, who disclosed his company’s plan to journalists on March 4.

The report mentioned that the planned R&D expansion in Hong Kong aligns well with CATL's strategy to place greater emphasis on exporting battery technologies and not just batteries. The move comes at a time when mainland Chinese electric vehicle as well as battery-makers are facing intensifying scrutiny from several foreign governments.

The Reuters report stated that CATL Chairman Zeng is a member of the Chinese People's Political Consultative Conference (CPPCC), which is a top advisory body of experts, business leaders and representatives from other political parties.

According to the report, previously, CATL's licensing attempts in the US had encountered several roadblocks. In 2023, Ford Motor Co. had announced its plan to invest $3.5 billion in building an EV battery plant in Michigan, US, borrowing battery technology from CATL. However, the plan could not materialize as it drew a significant criticism from some US lawmakers.

Europe too, in 2023, initiated an official probe into mainland Chinese subsidies and their impact on EV manufacturing. The European Commission had alleged that mainland Chinese subsidies have artificially kept the price of made-in-mainland China EVs low and these affordable EVs are disrupting the EV market in Europe.