CATL IN THE USA: KEY SITES AND OPERATIONS BY STATE
CATL, the world’s largest lithium-ion battery manufacturer, embodies Beijing’s electric vehicle (EV) and battery sector dominance ambitions. The company’s close corporate connections with the Chinese Communist Party (CCP), coupled with the mandates of Chinese law, provide Beijing the means to harness CATL’s global operations for purposes that transcend commercial objectives, potentially advancing its military and great-power ambitions.
The recently exposed “Volt Typhoon” operation — in which Chinese government-directed cyber actors compromised thousands of internet-connected network devices in an attempt to infiltrate Western critical infrastructure, including naval ports, internet services providers, and utilities — reflects China’s peacetime efforts to penetrate U.S. critical infrastructure as a preparatory step for its wartime operations. In pre-positioning itself within vulnerable U.S. networks, China appears poised to impede the mobilization of American military forces, foment a state of disarray, and redirect national attention and resources during a crisis.
Despite these risks, and owing to lax federal oversight and cyber security restrictions, CATL battery projects are proliferating across the United States.
All told, the multi-faceted threat posed by CATL (and other Chinese battery behemoths) includes:
CATL’s control over the data collected by charging stations and battery management systems might enable unauthorized access and potential misuse aligned with the CCP’s strategic and security interests. Chinese law requires CATL to provide the Chinese government with access to any and all of its proprietary and customer data — no questions asked.
CATL’s integration into the U.S. electrical grid, through its collaboration with Dominion Energy, HGP, and Primergy — along with increasing U.S. dependence on its charging infrastructure — creates potential vulnerabilities that could be exploited to disrupt essential services, similar to concerns raised about Huawei’s deep integration into global telecom networks.
CATL’s influence over charging and battery management technologies could allow the company to exert leverage over the development of industry standards and regulations, potentially hindering U.S. technological innovation and competitiveness, much like China’s efforts to set 5G standards through Huawei.
CATL’s dominance in the battery supply chain and growing influence over charging infrastructure provides China with potential leverage to withhold industry-specific inputs or shipments from U.S. operators, similar to China’s actions during the pandemic, when it hoarded personal protective equipment. Disruption or manipulation of battery-related inputs could have far-reaching effects beyond the broader automotive and energy sectors.
