Ford, Chinese firm may build battery plant in US: report | Daily News Byte

Ford, Chinese firm may build battery plant in US: report

 | Daily News Byte

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Ford Motor is considering the idea of ​​building a US battery plant with a Chinese company in a complex arrangement to avoid Sino-US political complications.

Ford and China’s Contemporary Amperex Technology Co could build a plant in Michigan or Virginia to reap tax benefits, according to Bloomberg.

The factory will supply lithium iron phosphate batteries for Ford’s electric models.

The ownership structure involves Ford owning 100% of the plant, while the Chinese battery giant will run the factory and own the technology that goes into the cells.

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Ford F-150 Lightning

Ford F-150 Lightning pickup trucks are on display at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan. ((Photo by Bill Pugliano/Getty Images) / Getty Images)

That would allow the facility to qualify for production tax credits under the US Inflation Reduction Act.

President Biden signed legislation that imposes new rules on sourcing battery components and critical minerals that will take effect Jan. 1 to qualify electric vehicles for tax credits.

A Ford logo on a sign

A Ford logo is visible on signage at Country Ford in Graham, NC ((AP Photo/Gerry Broome, File) / AP Newsroom)

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Under the Inflation Reduction Act, electric vehicles and their batteries must be manufactured in North America to get the credit.

Ticker Security Last Change Change the %
F FORD MOTOR CO. 13.04 -0.44 -3.26%

The Chinese government has discouraged CATL from investing in the US because of tensions with Beijing’s top geopolitical rival, according to people familiar with the situation.

electric vehicle

The Ford Focus electric, one of four EVs for the electric vehicle story. (David Cooper/Toronto Star (David Cooper/Toronto Star via Getty Images / Getty Images)

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The battery maker is putting plans to establish a new facility in North America after House Speaker Nancy Pelosi’s trip to Taiwan further strained relations between the countries.

FOX Business has reached out to Ford for comment on the story.

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