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As an automaker with large manufacturing capacity and a vertically integrated supply chain that stretches from batteries to chips, BID stands to lose from Washington’s efforts to rebalance the sector away from China. The US Anti-Inflation Act, which President Joe Biden signed into law in August, is pushing electric vehicle manufacturers around the world to produce more vehicles in North America and source key minerals for them outside of China.
Lee said the IRA threatens the acceptance of EVs in the US, although she applauded the country’s efforts to strengthen its own supply chain. The law has been widely criticized by car and EV battery manufacturers in Europe, China, South Korea and Japan.
Hopefully, the U.S. will “modify some language to at least allow Chinese suppliers to participate” in certain processes, she said.
BID is pursuing a dedicated cell manufacturing site in America, driven by strong consumer demand for cleaner cars. But Lee called “confusing” the requirement to source raw materials from countries with which the US has free trade agreements, necessarily sidelining China.
Lee talked to Bloomberg from Chile, where BID is negotiating to enter a mining project and apply for permits to process lithium into battery cathodes. BID is also keen to invest in African lithium projects, although it recognizes infrastructure gaps.
(Danny Lee, Eduardo Thomson and James Atwood)
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