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Dec 14 (Reuters) – China’s Ford Motor Co (FN) and Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ) are considering building a battery plant in Michigan or Virginia to reap tax benefits when not treading on Sino-US political sensitivities, Bloomberg reported on Wednesday.
The multibillion-dollar facility will make lithium iron phosphate batteries for Ford’s electric models, Bloomberg reported, citing people familiar with the matter.
The companies are envisioning an ownership structure in which Ford would own 100% of the plant, including the infrastructure, while the Chinese battery giant would operate the factory and own the technology to develop cells, the report said.
That would let the facility qualify for production tax credits under the US Inflation Reduction Act without requiring a direct financial investment from CATL, Bloomberg reported.
In October, Reuters reported that CATL had slowed plans to invest in battery plants in North America over concerns that new US rules on sourcing the necessary materials would drive up costs.
Ford and CATL did not immediately respond to Reuters’ request for comment.
Siddharth Jindal reporting in Bengaluru; Editing by Savio D’Souza
Our Standards: The Thomson Reuters Trust Principles.
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