By Jiahui Huang

Chinese tech company Baidu and battery giant Contemporary Amperex Technology plan to collaborate on autonomous driving amid intensifying competition in the field.

CATL and Baidu said Thursday via their WeChat accounts that they signed an agreement on two key areas--autonomous driving and digitalization, as part of efforts to accelerate the development of autonomous-driving services in China.

CATL will share its expertise in batteries, charging services and technology in facilitating driverless cars, while Baidu will leverage its artificial-intelligence tech to support CATL's operations, according to the statement.

The move comes as competition in China's auto market heats up in the area of autonomous-driving technology, following BYD's introduction of its driving-assistance technology system for its mass-market car models earlier this month.

Baidu is a major player in China's robotaxi sector, alongside peers Pony.ai and WeRide. The company's Apollo Go unit has a fleet of 400 driverless robotaxis in the Chinese city of Wuhan, the largest such operation in the country.

The collaboration could put Baidu in position to step up its robotaxi offering this year.

China is on the verge of large-scale robotaxi commercialization, Daiwa analysts said in a recent note. They project the market for robotaxi-related car manufacturing and auto components to reach 160 billion yuan, equivalent to about $22 billion, by 2026. Eventually, robotaxis may completely replace traditional ride-hailing vehicles, Daiwa said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

February 27, 2025 03:42 ET (08:42 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.