Ford Motor Co. and Chinese battery giant CATL are considering building a battery plant in the U.S. state of Michigan or Virginia to get tax breaks, Bloomberg reported.
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The multibillion-dollar plant would produce lithium iron phosphate batteries for Ford’s electric vehicles, Bloomberg said, citing people familiar with the matter. The two companies are considering an ownership structure in which Ford would own 100 percent of the plant, including the infrastructure, while CATL would operate the plant and provide the technology to make the batteries, the report said.
Such an arrangement would make the facility eligible for production tax credits under the new Inflation Reduction Act, while not requiring direct financial investment from Ningde, according to the report.
In October, Reuters reported that CATL slowed down plans to invest in a battery plant in North America because of concerns that new U.S. regulations on sourcing required materials would push up costs.
“CATL is still considering investing in the U.S. and we have not made a decision yet,” CATL said in an emailed statement. “There are multiple models under discussion regarding our investment in the U.S., and all of these options are based purely and solely on business considerations.”
In a statement, Ford said, “Our negotiations with CATL continue and we do not have any new announcements to make.”
