Robin Zeng, founder and CEO of CATL $3750 (-1,89 %)the world's largest manufacturer of batteries for electric vehicles, will accompany Chinese President Xi Jinping to the Asia-Pacific Economic Summit this week to strengthen partnerships with the South Korean electric vehicle industry.
Zeng, 57, has led CATL since the company was founded in 2011. He took his first steps in the battery business in 1999 with the founding of Amperex Technology Limited, a manufacturer of lithium polymer batteries for consumer electronics. The company was acquired by the Japanese TDK Corporation in 2005. Zeng remained in senior positions at the company before spinning off the electric vehicle battery business from ATL in 2011 and founding CATL.
Despite declining demand for electric vehicles, exacerbated by US tariffs on Chinese batteries, CATL maintained its leading position in the global battery market in the first half of this year. According to data from Seoul-based market observer SNE Research, the total number of battery installations in newly registered electric vehicles, plug-in hybrids and hybrids worldwide reached 590.7 gigawatt hours in this period, with CATL accounting for almost 40 percent of the total at 221.4 gigawatt hours.
During his visit to Korea, Zeng is reportedly planning to meet with leading Korean CEOs - including Chung Euisun, Chairman of the Hyundai Motor Group $011760Chey Tae-won, Chairman of the SK Group $034730and Koo Kwang-mo, Chairman of the Board of LG Group $373220 - to discuss potential battery supply contracts and the purchase of advanced Korean battery materials and equipment.
According to industry insiders, Zeng's upcoming trip, his first visit to Korea since March 2023, is expected to focus on expanding the battery supply partnership with Hyundai Motor outside the US.
The Chinese battery manufacturer reached an important milestone in July with the signing of a contract to supply NCM batteries for the Kia EV5. It also supplies mid- to low-priced LFP batteries for models such as the Hyundai Kona Electric and the Kia Niro EV and Ray EV. According to industry insiders, Zeng's visit to Korea could further strengthen the cooperation between the Hyundai Motor Group and CATL.
"The US tariffs make it difficult for Hyundai and CATL to work together in North America, but partnerships in emerging markets such as the Middle East, India and Southeast Asia are probably inevitable as Chinese batteries are key to cost competitiveness," said a senior battery researcher at a Korean battery company on condition of anonymity.
With the Russian market virtually closed off, Hyundai is increasingly focusing on these regions, opening up room for wider cooperation.
CATL is also reportedly interested in buying NCM battery materials and equipment from Korean companies.
The source added: "NCM is a three-component or ternary system that delivers peak performance only when optimized through precise processing - an area where Korean technology currently outperforms Chinese. For CATL, too, improving quality and reducing the defect rate requires Korean know-how, especially in optimizing production steps such as automated material feeding, heat treatment and seamless process integration."