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

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(Reuters) - 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.The world's largest battery maker, which supplies one of every

- 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 CATL executives have slowed the process of vetting sites for potential new plants in North America since late August when the United States imposed tough new restrictions on the sourcing of material used in EV batteries, two people, who spoke on condition they not be named, told Reuters.Executives from Volkswagen, BMW, and Hyundai have urged U.S.

The IRA requires automakers to have 50 per cent of critical minerals used in EV batteries sourced from North America or U.S. allies by 2024, rising to 80 per cent by the end of 2026. It was not immediately clear how much of a delay CATL was considering in any North American expansion or whether it could make other adjustments to its approach to narrow the cost gap.

Envision AESC, a Chinese renewable energy group that acquired a Nissan Motor Co Ltd battery supplier already operating in the United States, will build a new battery plant in South Carolina to supply BMW, the companies said.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.

 

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