Tesla Inc (NASDAQ: TSLA) and Nio inc (NYSE: NIO) battery supplier Modern company Amperex Technology Co or CATL sues an opponent China lithium battery company (CALB) for alleged intellectual property infringements, Reuters reported Wednesday.
What happened: CATL reportedly claimed in the suit that the batteries installed by CALB in tens of thousands of vehicles were using its technology.
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According to Reuters, the lawsuit was filed in Fuzhou, near the company’s headquarters in Ningde in China’s Fujian province.
CALB, a supplier to China’s GAC Group, has denied the accusations by Reuters and said it is focused on independent research and technology development.
The company said its batteries were tested for infringement of the intellectual property rights of others.
Why is it important: Tesla signed an extended long-term battery supply agreement with CATL last month that extends their partnership through December 2025.
See also: Tesla Model Y Demand Drives LG Energy Solutions Battery Sales, Korean Company Becomes Leading Supplier in May
CATL reportedly plans to build a new electric vehicle battery factory in Shanghai. According to a Reuters report, the plant has a capacity of 80 gigawatt hours of batteries per year.
CATL chair Robin Zeng surpassed Alibaba Group Holding Ltd (NYSE: BABA) co-founder Jack Ma on the Forbes billionaire list earlier this month.
At the time of publication, Zeng was ranked 26th with a fortune of $ 48.7 billion, while Ma was ranked 28th with a fortune of $ 46 billion.
Price action: Tesla shares closed 0.79% lower at $ 655.29 in the regular session on Wednesday and fell nearly 0.6% after trading closed. On the same day, Nio shares rose 5.89% in the regular session to $ 46.77 and nearly 0.8% after the close.
Read more: Tesla supplier CATL denies coercion of employees to buy “faulty” electric vehicles of Elon Musk’s company
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