Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

CATL is “open” to onshoring in the US despite trade war | Automotive World

Nov 13, 2024 - automotiveworld.com
CATL CEO Robin Zeng has expressed interest in building a US factory if president-elect Donald Trump allows local Chinese investment. This comes after years of tension between the US and China over electric vehicles (EVs) and batteries, with protectionist policies making it difficult for Chinese EV companies to establish a presence in the US. Despite high tariffs on Chinese EVs and batteries, there is potential for China to build trade inroads as many Western automakers, including Tesla, rely on China for their batteries.

Trump has indicated a willingness to allow Chinese EV companies to do business in the US under certain conditions, and Elon Musk, who has a licensing deal with CATL for battery production, may influence Trump's decision. Allowing CATL to establish local production could enable US companies to do business with the battery giant without sacrificing their customers' eligibility for subsidies. However, the future of these subsidies and the incentives laid out in the Inflation Reduction Act are uncertain under the incoming administration.

Key takeaways:

  • CATL CEO Robin Zeng has expressed interest in building a US factory if president-elect Donald Trump allows local Chinese investment.
  • Chinese EV makers face a 100% duty when exporting to the US, and tariff rates on lithium-ion batteries have increased from 7.5% to 25% in 2024.
  • Ford plans to license CATL's technology for battery production, a move that has raised concerns among some US politicians.
  • President-elect Trump has indicated a willingness to allow Chinese EV players to do business in the US under certain conditions, potentially opening the door for CATL to establish local production.
View Full Article

Comments (0)

Be the first to comment!