A view of CATL headquarters in Ningde, East China's Fujian Province Photo: VCG

CATL has the capacity to provide appropriate and competitive solutions in line with clients' needs, the company commented in response to media reports that Tesla Inc is in supply talks with the electric battery maker.

Reuters reported on Tuesday that Tesla is considering using batteries from CATL that contain no cobalt in a bid to lower production costs.

Tesla declined to comment.

One possibility is lithium iron phosphate (LFP) batteries that use cell-to-pack technology, which could help costs and installation capability, according to a note from CITIC Securities.

CATL trading in the Shenzhen Stock Exchange inched up 3.73 percent to 158.92 yuan ($22.7) per share when the story was released on Thursday morning, while another leading LFP battery maker BYD saw its trading in Shenzhen surge to the daily limit of 10 percent, up to 68.10 yuan.