EXCLUSIVE China's CATL slows battery investment plan for U.S., Mexico-sources

  • 📰 Reuters
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

Chinese battery giant CATL has slowed its planning for investment in battery plants in North America on concern that new U.S. rules on sourcing battery materials will drive costs higher, two people with knowledge of the matter said.

But the shift by CATL represents the first known example of an automaker or major supplier rethinking an investment because of the new law, known as the Inflation Reduction Act .

The rules would hike the costs of manufacturing batteries in the United States to a level higher than shipping them from China even if the U.S. government offers subsidies for CATL to build the plants, said a third person, who also asked not to be identified. On Wednesday, BMW announced a $1.7 billion investment to build EVs and high-voltage batteries in South Carolina. At the event to announce the investment,Envision AESC, a Chinese renewable energy group that acquired a Nissan Motor Co Ltd

Hyundai Motor Co, which is set to break ground next week on a $5.5 billion EV plant in Georgia, also wants U.S. legislators to offer companies investing in the United States some type of waiver or a longer transition period.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines