Tesla in talks with CATL, China’s leading EV battery maker, on building plant in the US
- Tesla has discussed plans involving Contemporary Amperex Technology with the White House in recent day, sources say
- Ford announced a deal with CATL last month to build a battery plant in Michigan, which will be wholly owned by the US carmaker
The EV maker discussed plans involving Contemporary Amperex Technology with the White House in recent days, said the people, who asked not to be identified revealing private conversations. Tesla representatives sought clarity on the Inflation Reduction Act rules that the Biden administration is finalising this week, according to some of the people. Rohan Patel, the company’s senior global director of public policy, was among those involved with the discussions, one of the people said.
Representatives of Tesla, CATL and the White House did not immediately respond to requests for comment. Patel also did not respond.
Tesla is in expansion mode, deploying its US$22 billion in cash to crank up production volumes and lower costs as it faces increased competition. CATL, which makes lithium iron phosphate batteries, a chemistry that is cheaper than the nickel-based batteries used in the West, is key to that plan.
The carmaker is considering building the battery plant in Texas to supply its EV assembly plant there, though a location has not been finalised, some of the people said. Like the Ford deal structure, Tesla would own and operate the factory while licensing the technology from CATL.