Hesai plans overseas factory to mitigate geopolitical risks

Hesai, China's leading lidar manufacturer, plans to open its first overseas factory next year to reduce risks from geopolitical tensions and tariffs. This move comes as customers encourage diversification in production to avoid disruptions. The company is currently facing challenges after being blacklisted by the Pentagon, which it disputes. Despite this, Hesai secured a contract with Mercedes-Benz, marking a significant step in using its technology in vehicles outside China. Hesai aims to begin construction on the new factory by the end of 2025, with production expected in 2026. The company recently reported its first profitable year and anticipates strong growth in the lidar market, particularly in China.