- Chinese battery supplier CATL may establish a U.S. plant
- The decision depends on the stance of the Trump administration towards Chinese market entry
- CATL expressed interest in investing in the U.S., but has faced government opposition
There is potential for Chinese battery supplier CATL to construct a factory in the United States if the upcoming Trump administration permits it, revealed the company’s founder in a recent interview.
“Initially, when we considered investing in the U.S., we received a negative response from the U.S. government,” stated Robin Zeng in an interview with Reuters published on Wednesday. “I am open-minded about this.”
Up to now, CATL has only engaged in licensing agreements with automakers in the U.S. Ford announced in 2023 the establishment of a Michigan battery plant for producing lithium iron phosphate (LFP) batteries, crucial for making electric vehicles more affordable. While the battery cells will utilize CATL technology, the factory will be owned by Ford. A recent report suggested that General Motors is exploring a similar partnership with CATL.
Ford Mustang Mach-E, F-150 Lightning getting CATL LFP batteries
Even before Trump, who initiated a trade conflict with China in 2017 during his first term, was re-elected as president, this arrangement was already in jeopardy.
Under the current Biden administration policy, electric vehicles utilizing batteries made in China are ineligible for federal EV tax credits. Additionally, vehicles produced by companies with Chinese government ownership do not qualify for these tax credits. A Republican proposal, which the current administration opposes, aims to eliminate tax credits for EVs incorporating Chinese battery technology licensed by U.S. automakers.
Despite Trump’s efforts to block imports of vehicles from Chinese automakers, even if they are assembled in other countries like Mexico, Reuters reported that he expressed willingness in an August interview for Chinese companies to manufacture cars in the U.S.
CATL Freevoy plug-in hybrid battery pack
“We will provide incentives, and if China and other nations wish to sell cars here, they must establish production plants here and employ our workers,” stated Trump in August. Zeng is hopeful that this policy will extend to battery production as well, stating to Reuters, “I am optimistic that they will be receptive to investments in the future.”
The type of batteries that CATL would manufacture in the U.S. remains uncertain, but the company is currently expanding its business of supplying batteries for commercial vehicles in its domestic market. Additionally, they recently introduced a multi-chemistry battery pack tailored for plug-in hybrids.