CATL will supply Fisker with more than 5 GWh of capacity annually from 2023-2025.

(Image credit: Fisker)

US electric vehicle (EV) startup Fisker Automotive announced today that it has signed an agreement with Chinese power battery giant Contemporary Amperex Technology Co Ltd (CATL), which will supply batteries for its Ocean SUV.

CATL (SHE: 300750) will provide Fisker with more than 5 GWh of initial capacity annually from 2023-2025, according to a statement from the latter.

CATL will supply Fisker with batteries based on high-capacity lithium nickel manganese cobalt (NMC) cells as well as batteries based on high-value lithium iron phosphate (LFP) cells, according to Fisker.

The two have been working closely together since 2020 to develop battery solutions for Fisker.

"By utilizing multiple chemistries and designing an extremely efficient pack, we will be able to achieve our targeted driving range for the Fisker Ocean Sport and bring segment benchmark-driving range to the longer-range versions of Fisker Ocean," said Henrik Fisker, the company's CEO and Chairman.

Fisker remains on target to start production and deliveries of the all-electric Fisker Ocean in November 2022 and to unveil the production-intent version, including additional battery specifications and product features, on November 17, 2021, at the Los Angeles Auto Show, the company said.

This is the latest supply agreement between CATL and a US EV maker.

Electric Last Mile Solutions (ELMS), a NASDAQ-listed pure-play commercial electric vehicle company, said on Oct. 14 that it had reached an agreement with CATL to supply batteries.

CATL will supply ELMS with 42 kWh of LFP batteries using cell-to-pack (CTP) technology similar to that used in Nio's battery packs. It will supply batteries for ELMS' electric commercial vehicles through 2025.

CATL is the largest supplier of power batteries in China. According to data released last month by the China Automotive Battery Innovation Alliance, CATL installed 8.87 GWh of power batteries in China in September, with a market share of 56.5 percent, up 4.8 percentage points from 51.7 percent in August.