China's CATL could build a plant in the US if Donald Trump says yes

Chinese battery manufacturer CATL (Contemporary Amperex Technology Co. Limited) has hinted at the possibility of building a factory in the US - but only if Donald Trump supports it.

Today, CATL batteries for electric cars do not qualify for tax credits in the US due to restrictions in the Inflation Reduction Act (Inflation Reduction Act.) However, the situation may change if the US president-elect supports the Chinese company's initiative.

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CATL CEO Robing Zeng told Reuters that the company had previously tried to contact U.S. officials but had met resistance. Nevertheless, he hinted that the idea was still on the table: "I remain open. I hope they will also be open to investment in the future."

While US politicians of both parties, including Donald Trump, are keen to limit the presence of Chinese cars in the US, Trump himself has previously said he has nothing against Chinese carmakers building factories in the country, which would create new jobs. The same conditions could be favourable to CATL.

Despite the lack of its own production in the US, CATL is currently licensing its technology to Ford Motor. The latter is planning to launch the BlueOval Battery Park plant in Michigan. It will produce lithium-iron-phosphate (LFP) batteries for the F-150 Lightning and Mustang Mach-E electric models.

Source: Reuters