Chinese battery giant CATL has slowed its planning for investment in battery plants in North America on concern that new U.S. rules on sourcing battery materials will drive costs higher, two people with knowledge of the matter said.
But the shift by CATL represents the first known example of an automaker or major supplier rethinking an investment because of the new law, known as the Inflation Reduction Act .
The rules would hike the costs of manufacturing batteries in the United States to a level higher than shipping them from China even if the U.S. government offers subsidies for CATL to build the plants, said a third person, who also asked not to be identified. On Wednesday, BMW announced a $1.7 billion investment to build EVs and high-voltage batteries in South Carolina. At the event to announce the investment,Envision AESC, a Chinese renewable energy group that acquired a Nissan Motor Co Ltd
Hyundai Motor Co, which is set to break ground next week on a $5.5 billion EV plant in Georgia, also wants U.S. legislators to offer companies investing in the United States some type of waiver or a longer transition period.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. senator to hold EV battery hearing if GOP takes controlU.S. Republican Senator Lindsey Graham on Wednesday said he will hold a hearing on electric vehicle batteries and sourcing issues if his party takes control after the November midterm elections.
Read more »
Tesla To Produce Cybertruck Battery Packs At Fremont Factory: ReportSources suggest Tesla's new Fremont battery equipment is a new line that may use battery cells from Kato Rd. to produce Cybertruck battery packs for Giga Texas.
Read more »
‘Rust’ Makes Early Plans to Restart Production in CaliforniaThe production is currently planning not to return to New Mexico in 2023, sources tell The Hollywood Reporter.
Read more »
U.S. mulls joint weapons production with Taiwan, Nikkei reportsThe U.S. government is considering a plan to jointly produce weapons with Taiwan, Japan's Nikkei newspaper said on Wednesday, citing three sources.
Read more »