According to Bloomberg on Wednesday, Ford Motor Co (F.N) and China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ) are thinking about constructing a battery plant in Virginia or Michigan to take advantage of tax benefits without infringing on Sino-U.S. political sensibilities.
According to persons familiar with the situation who were cited by Bloomberg, the multibillion-dollar facility will produce lithium iron phosphate batteries for Ford’s electric cars.
According to the story, the businesses are considering an ownership arrangement in which Ford would control the entire facility, including the infrastructure, while the Chinese battery juggernaut would run it and be the owner of the cell-building technology.
According to Bloomberg, this would allow the plant to be eligible for production tax credits under the U.S. Inflation Reduction Act without requiring a direct financial contribution from CATL.
According to Reuters, CATL paused its plans to invest in battery operations in North America because it was worried that new American regulations on where to source necessary materials would increase costs.
Reuters contacted Ford and CATL for comment, but neither company gave a response right away.
