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.