Electric Car Companies Push Back Against Restrictive Trade Policies

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The world of electric car manufacturing is expanding, as Chinese companies build new factories in more countries.

I knew a fellow once who liked to say, “There’s more ways to kill a cat than kiss it to death.” As new trade policies in North America and Europe seek to stem the tide of cheap electric car models and subsidized batteries from China, Chinese companies are exploring workarounds designed to blunt those policies. The inexorable march of commerce will not be easily stanched if they have any say in the matter.

BYD has become the largest automobile seller in China as well as the largest plugin vehicle seller in the world and has vowed to bring its lower priced EVs to Europe in the coming years, including thelast week and has also taken over a former Ford factory in Brazil. It is reported to be exploring locations for a factory in Mexico and it is currently building its first car factory for Europe in Hungary.

Some of the new China investments in Morocco explicitly cite the new US subsidies as a reason. Many are joint ventures that have cited their ability to tinker with board seats and governance to comply with US rules. That includes CNGR, one of China’s largest battery cathode producers, which in September announced a $2 billion plan to build what it called a “base in the world and pan-Atlantic region” in a joint venture with the Moroccan royal family’s investment group, Al Mada.

LG Chem said the venture would adjust ownership shares as necessary to comply with US rules. China’s BTR Group announced a cathode factory in April noted that Morocco’s trade status with the United States and Europe would ensure “a seamless entry for the majority of its manufactured products into these regions.

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