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HomeautomobileChina's CATL open to constructing US battery plant if Trump permits

China’s CATL open to constructing US battery plant if Trump permits


  • Chines battery provider CATL might construct a plant within the U.S.
  • The choice would hinge on whether or not Trump’s administration permits the Chinese language to enter the market
  • CATL wished to spend money on the U.S. however so far the federal government’s stated no

Chinese language battery provider CATL is open to constructing a U.S. manufacturing facility if the incoming Trump administration permits it, the corporate’s founder stated in a current interview.

“Initially, after we wished to spend money on the U.S., the U.S. authorities stated no,” Robin Zeng stated in an interview with Reuters printed Wednesday. “For me, I am actually open-minded.”

CATL has thus far restricted its U.S. presence to licensing offers with automakers. Ford in 2023 introduced a Michigan battery plant to construct lithium iron phosphate (LFP) batteries, which the automaker has stated are a key to EV affordability. The battery cells produced there can be based mostly on CATL tech, however the manufacturing facility itself can be owned by Ford. An April report stated Normal Motors could also be looking for an analogous deal with CATL.

Ford Mustang Mach-E, F-150 Lightning getting CATL LFP batteries

Ford Mustang Mach-E, F-150 Lightning getting CATL LFP batteries

Even earlier than Trump, who launched a commerce struggle with China throughout his first time period in 2017, was elected to a second time period as president, that association was already below risk.

Below current Biden administration coverage, automobiles with Chinese language-made batteries don’t qualify for a federal EV tax credit score, nor do automobiles manufactured by entities in whose father or mother corporations the Chinese language authorities has a stake. A Republican invoice, opposed by the present administration, would additionally eradicate tax credit for EVs making use of Chinese language battery tech licensed by U.S. automakers.

But whereas Trump needs to stop imports of automobiles from Chinese language automakers—even when they’re assembled in different international locations like Mexico—Reuters notes that in an August interview he was open to Chinese language companies constructing automobiles within the U.S.

CATL Freevoy plug-in hybrid battery pack

CATL Freevoy plug-in hybrid battery pack

“We’ll give incentives, and if China and different international locations wish to come right here and promote automobiles, they are going to construct vegetation right here, and they are going to rent our staff,” Trump stated in August. Zeng seems optimistic that this coverage will apply to batteries as effectively, telling Reuters that “I do hope that sooner or later they’re open to investments.”

It stays to be seen what batteries CATL would produce within the U.S., however the firm is presently increasing its commercial-vehicle battery-supply enterprise in its residence market, and not too long ago launched a mixed-chemistry battery pack designed for plug-in hybrids.

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