CALB sues CATL over patent infringement in escalating battery rivalry

Until now, CALB had been the defendant in multiple patent infringement cases initiated by CATL, but this time, CALB is the plaintiff. The damage CALB is seeking is significantly higher than the total RMB 700 million (€91 million) CATL previously claimed in six patent infringement cases against CALB.
Image: Pixabay

Hong Kong-listed Chinese battery manufacturer CALB said on October 18 that it had filed lawsuits in Hubei and Jiangsu provincial courts against CATL and its affiliates, alleging infringement on four battery-related patents.

CALB is seeking damages totaling RMB 1.007 billion (€130 million). The lawsuits target CATL, its subsidiary Sichuan Times New Energy Technology Co., as well as Tesla’s Wuhan sales service company, Zeekr’s Changzhou sales arm, and Avatr’s Wuhan division. Notably, this is CALB’s first time initiating a patent infringement suit against CATL.

The allegations cover patents central to battery structure, assembly techniques, battery pack design, cooling systems, and integration technologies, including innovations in battery devices and cooling systems for liquid-cooled modular units. The largest claim within the lawsuits relates to liquid-cooled modular battery systems, with CALB seeking RMB 560 million (€73 million) in damages.

In its filing, CALB required that CATL and related entities immediately cease the alleged infringements and pay compensation for economic damages and litigation costs.

This lawsuit marks a turning point in the patent standoff between CALB and CATL, which began in 2021. Until now, CALB had been the defendant in multiple patent infringement cases initiated by CATL, but this time, CALB is the plaintiff. The damage CALB is seeking is significantly higher than the total RMB 700 million (€91 million) CATL previously claimed in six patent infringement cases against CALB.

Since July 2021, CATL has launched a series of patent infringement cases against CALB and focuses on battery technologies such as explosion-proof devices and current collectors. CATL initially filed claims covering five patents with a combined RMB 188 million (€24 million) in damages.

To date, CATL has won three cases concerning current collector devices, explosion-proof technology, and battery modules, receiving compensation totaling RMB 44.5 million (€5.8 million). CALB, however, has appealed to the adverse judgments and noted its intentions to continue contesting these outcomes.

In December 2023, CATL experienced its own legal setbacks when China’s Supreme People’s Court overturned initial rulings by a Fuzhou court in CATL’s cases on positive electrode plate patents and lithium-ion battery technology, dismissing CATL’s claims.

CALB, originally established in 2007 as a subsidiary under AVIC (Aviation Industry Corporation of China), has evolved as a key player in China’s lithium battery industry. Since CALB’s current chairwoman Liu Jingyu took the helm in 2018, the company has expanded rapidly, particularly with a low-cost strategy that has made it a preferred supplier for major EV players like China Guangzhou Automobile Group (GAC Group), Xpeng, NIO, and Changan Auto.

As of the first nine months of 2024, CALB’s market share in China’s EV battery sector stands at 6.94%, ranking third, though still well behind CATL’s commanding 45.85%. CALB’s rapid rise has attracted attention. In 2018, it held only ninth place, but between 2019 and 2021, CALB was the only Chinese battery maker among the top ten to achieve a yearly growth rate exceeding 100%. CALB’s 2023 financial report recorded RMB 26.35 billion (€3.42 billion) in revenue from mainland China, representing a 31.8% increase year-on-year.

Industry analysts suggest that patent disputes like this could hinder competitors’ market expansion and R&D efforts in an increasingly competitive battery market, with expectations of more cases to come in future.

Written by

Comments

Your email address will not be published. Required fields are marked *

Cancel reply
Please enter your comment.
Please enter your name.

This website uses cookies to anonymously count visitor numbers. View our privacy policy.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close