Tesla supplier CATL, as well as tech giant Tencent, named as “Chinese military companies” by Pentagon
Every year, the Secretary of Defense is required to publish a list of “Chinese military companies.” One of the latest to be added to that list is a big one — in fact, it’s China’s biggest company by market capitalization: Tencent. Also added to the directory was Contemporary Amperex Technology Co. (CATL), the world’s leading battery maker for electric vehicles and an important supplier to some of the world’s biggest automakers, including Tesla, Ford, Stellantis, and Volkswagen.
Per Bloomberg, Tesla is CATL’s largest customer, accounting for more than 12% of its revenue, with 1 in 3 electric cars around the world estimated to have a CATL battery. Last year, the chairman of CATL divulged in an interview that it was working on faster-charging batteries for Tesla, and at the end of December 2024 the company filed for a second listing of its shares in Hong Kong, as it seeks further access to capital in order to fund its global expansion.
Shares in CATL were 3% lower in trading today. Tencent’s Hong Kong-listed shares fared worse, closing down more than 7% after the company was designated a “Chinese military company,” wiping out more than $35 billion in market value.
The growing list of companies on the Defense Department’s list is part of an escalating economic tit for tat between the two superpowers. After the US’s export controls aimed to limit China’s semiconductor industry, Beijing recently bit back by banning shipments of certain semiconductor- and military-related minerals and metals to the US.
Per Bloomberg, Tesla is CATL’s largest customer, accounting for more than 12% of its revenue, with 1 in 3 electric cars around the world estimated to have a CATL battery. Last year, the chairman of CATL divulged in an interview that it was working on faster-charging batteries for Tesla, and at the end of December 2024 the company filed for a second listing of its shares in Hong Kong, as it seeks further access to capital in order to fund its global expansion.
Shares in CATL were 3% lower in trading today. Tencent’s Hong Kong-listed shares fared worse, closing down more than 7% after the company was designated a “Chinese military company,” wiping out more than $35 billion in market value.
The growing list of companies on the Defense Department’s list is part of an escalating economic tit for tat between the two superpowers. After the US’s export controls aimed to limit China’s semiconductor industry, Beijing recently bit back by banning shipments of certain semiconductor- and military-related minerals and metals to the US.
