Benzinga | Aug 12, 2020 04:43AM EDT

Tesla Battery Supplier CATL Says Working On New Tech That Could Increase EV Range To Over 500 Miles

Tesla Inc (NASDAQ:TSLA) supplier Contemporary Amperex Technology Co Ltd, or CATL, claims it is developing a technology that will allow batteries to be embedded directly into an electric vehicle's chassis -- thus eliminating the need for heavy casings used in traditional battery packs, Reuters reported Wednesday.

What Happened

The new technology would significantly increase EV range, as more battery cells could be added directly to the vehicle's frame.

The Chinese battery maker's Chairman Zeng Yuqun disclosed at an industry conference in Wuhan Wednesday that the novel technology would allow EVs to achieve a range of over 800 Kms, as per Reuters.

CATL will reportedly launch the technology before 2030, but didn't say if it was working in collaboration with any automaker.

Zeng added that the company is looking into new businesses such as battery recycling and energy storage.

Why It Matters

Tesla utilizes CATL's cobalt-free Lithium Iron Phosphate batteries for its Standard Range Plus Model 3 vehicles, made at the Shanghai gigafactory, according to local Chinese media.

The company also supplies these batteries to Honda Motor Co., Ltd (NYSE:HMC), Volkswagen AG (OTC:VWAGY) and Daimler AG (OTC:DDAIF), Reuters noted.

The Elon Musk-led company's Korean partner LG Chem (OTC:LGCLF) has emerged as the world's largest battery supplier in the first half of 2020, according to SNE Research. Korean battery makers are benefitting from an increase in demand for EVs in Europe.

The Chairman of CATL also expects Europe's EV market to outperform that of China's because the country has cut subsidies, Reuters reported.