CATL Jointly Invests in the Research and Development of Autonomous Taxis

SHENZHEN - China's autonomous vehicle landscape has welcomed a formidable new entrant as Contemporary Amperex Technology (CATL), the world's largest battery manufacturer, officially ventures into the self-driving sector through a strategic partnership that signals a fundamental shift in the industry's competitive dynamics.

On June 23, CATL joined forces with mobility giant Hello Inc. and fintech conglomerate Ant Group to establish **Shanghai Zaofu Intelligent Technology Co., Ltd.**, with registered capital of 1.288 billion yuan ($178 million). The consortium's initial investment exceeds 3 billion yuan ($415 million), targeting the development and commercialization of Level 4 autonomous robotaxis.

The venture's name "Zaofu" pays homage to a legendary Chinese charioteer renowned for exceptional driving skills, symbolizing the company's ambition to demonstrate superior technical prowess and operational excellence in autonomous driving.

This collaboration represents a strategic evolution for CATL, transforming from a pure-play battery supplier into an integrated smart mobility ecosystem architect. The timing is particularly significant as Tesla's robotaxi service commenced pilot operations in Austin, Texas, just one day earlier on June 22.

How Should the Development of Autonomous Taxis be Divided Among Different Parties?

The partnership leverages each company's core competencies through a clearly defined operational framework. CATL contributes its intelligent skateboard chassis technology and high-safety battery systems, addressing critical range and hardware safety bottlenecks in robotaxi deployment. Ant Group provides AI large language models, blockchain infrastructure, and credit systems to optimize autonomous driving decision algorithms and enhance user payment experiences. Hello Inc. brings its substantial user base of 28 million daily active users across 360 cities, along with its nationwide operational network, providing real-world deployment scenarios and traffic entry points.

According to industry analysis, this trilateral structure represents a departure from the prevailing domestic model where autonomous driving companies typically partner with original equipment manufacturers to procure vehicles and build fleets independently. The CATL-led consortium's vertical integration mirrors Tesla's approach, where the electric vehicle manufacturer leverages its own production capabilities and supply chain control.

What is the Current State of the Driverless Taxi Market?

China's robotaxi sector remains dominated by established players including Baidu's Apollo Go (operating over 2,000 vehicles), Pony.ai, and WeRide. Apollo Go, operated by Chinese internet giant Baidu, delivered over 1.1 million rides nationwide in Q4 2024, representing 36% year-over-year growth and 11% quarter-over-quarter expansion. The service averages approximately 80,000 weekly rides nationally, completing 12,000 daily orders.

source: Apollo Go 

WeRide achieved a significant milestone by becoming the world's first publicly traded autonomous driving company when it listed on NASDAQ in October 2024 under the ticker "WRD." The company reported Q1 2025 revenue of 72.44 million yuan ($10 million), with robotaxi services contributing 16.1 million yuan, representing 22.3% of total revenue. WeRide's strategic partnership with Uber, announced in May 2025, includes a $100 million equity investment and plans to deploy robotaxis across 15 additional cities over five years, covering European and Middle Eastern markets.

Geely-backed Caocao Chuxing launched its autonomous driving platform on February 28, deploying vehicles equipped with Geely's "Qianli Haohan" robotaxi solution in Suzhou and Hangzhou. The company, scheduled for Hong Kong Stock Exchange listing on June 25, operates over 34,000 customized vehicles across 31 cities as of end-2024, representing China's largest comparable fleet according to Frost & Sullivan data.

Forecast of China's Driverless Taxi Market

Goldman Sachs' comprehensive research report published in May 2025 projects significant commercial potential for China's robotaxi market. The investment bank forecasts 500,000 robotaxis operating across more than 10 Chinese cities by 2030, with the market transitioning from technical feasibility discussions to commercial implementation strategies.

The research anticipates China's robotaxi market expanding from $54 million in 2025 to $47 billion by 2035, representing a 757-fold increase over the decade. By 2035, robotaxi fleets are projected to reach 1.9 million vehicles, comprising 25% of shared mobility vehicles. Goldman Sachs expects positive gross margins to emerge in tier-one cities beginning in 2026, with overall market profitability anticipated by 2035.

This growth trajectory reflects declining hardware and algorithm costs, reduced operational expenses, and improved vehicle utilization efficiency. The sector's early-stage nature continues to attract new participants, suggesting opportunities for late entrants to achieve competitive positioning through differentiated strategies.

The CATL consortium's entry underscores the autonomous vehicle industry's evolution from pure-technology plays toward integrated mobility ecosystems, potentially reshaping competitive dynamics in one of the world's most promising autonomous driving markets.