CATL (H/A): US may expand restrictions on Chinese inverters; limited direct impact to CATL

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CATL (H/A): US may expand restrictions on Chinese inverters; limited direct impact to CATL

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CATL (H/A)

US may expand restrictions on Chinese

inverters; limited direct impact to CATL

PO: 740.00 HKD | Price: 702.00 HKD

US may consider adding restrictions on Chinese inverters 01 July 2026

According to Reuters news, the U.S. Federal Communications Commission (FCC) is Equity

drafting new restrictions on imports of foreign-made inverters, which connect solar

Ming Hsun Lee, CFA >>

projects and batteries to the grid, primarily targeting Chinese suppliers over grid security Research Analyst

concerns. The proposed rule would apply to new foreign inverter models, and could be Merrill Lynch (Hong Kong) minghsun.lee@bofa.com

released as early as this year. Reuters noted that the initiative was partly influenced by

Matty Zhao >>

the European Commission's recent move to restrict Chinese-made inverters in publicly Research Analyst

funded energy projects. However, the proposal remains under review and could still be Merrill Lynch (Hong Kong) matty.zhao@bofa.com

modified or withdrawn.

Yikai Liu, CFA >>

Research Analyst

Merrill Lynch (Hong Kong)Limited direct impact to CATL

According to our supply chain check, CATL’s revenue exposure to the U.S. market Joey Yang, CFA >> Research Analyst

accounts for mid-to-high single-digit percentage of total revenue, mostly from ESS Merrill Lynch (Hong Kong)

battery cell. CATL currently primarily supplies battery cells and energy storage cabinets Fiona Liang >>

to U.S. customers, including Tesla, Fluence Energy, and NextEra Energy. Its US clients Research Analyst Merrill Lynch (Hong Kong)

may purchase PCS (power conversion system) from other Chinese suppliers. As a result,

Summer Wang, CFA >>