China’s leading battery manufacturer CATL is developing faster-charging batteries for Tesla as the automaker seeks to defend its market share and introduce an electric vehicle priced below $25,000.

Zeng Yuqun, chairman of CATL said on Monday that there is always room to reduce costs, depending on what the goal of the $25,000 car is. He also added that if it is to be used as an autonomous taxi, there is no need to worry about reducing the cost of each battery pack, because CATL’s batteries have a longer lifespan and the average cost is actually lower.

Zeng further confirmed that CATL is supplying equipment to Tesla’s factory in Nevada. Reports suggest that Tesla will expand its battery production in Nevada, using idle equipment from CATL to open a small factory.

The two companies are collaborating on battery technology, particularly in terms of new electrochemical structures, to achieve faster charging speeds. He noted that Elon Musk is incredibly energetic and said he felt somewhat inferior in comparison.

Zeng expressed optimism about CATL’s model of licensing its battery manufacturing technology to partners, charging royalties, and providing services.

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