Ford and CATL Possibly Considering Battery Plant In US

CATL’s next latest battery manufacturing plant may end up in Michigan, or possibly Virginia.

CATL, or Contemporary Amperex Technology Co. Limited, is no stranger to the battery manufacturing game, making EV battery cells and tech for a staggering number of automakers, including Ford. Yet, its Chinese origin has been a source of contention given the tense geopolitics of the U.S. and China as of late. To help ease that, or maybe to get around it, CATL and Ford are considering building a new battery plant, in Michigan or Virginia, with some interesting terms of service.

According to Bloomberg News if constructed, the plant would see Ford owning the physical building and infrastructure, but CATL would actually run the factory. CATL would own the technology to build the cells, too. The idea is that the U.S. CATL plant would allow Ford (and anyone using CATL batteries produced there) to qualify for monetary incentives as a result of the Inflation Reduction Act’s made-in-North America clause. The tax credit could see companies rake in as much as $35 per kilowatt hour, per cell produced; for a big manufacturer like CATL, that’s a lot of money, and could offset the import of raw materials that comes from China to make the cells. Currently, the Ford F-150 Lightning and Ford Mustang Mach-E both use CATL cells and battery technology.

Still, the rumor mill is buzzing; Automotive News pressed CATL and Ford on this plan, and neither would confirm that they were planning a battery plant in the U.S. We’ll just have to wait and see if it’s true.

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