Hyperdrive

Ford, China’s CATL Mull Workaround for New US Battery Plant With US-Chinese Tensions High

  • Chinese government has discouraged CATL from investing in US
  • Ford considering unique ownership structure to sidestep China
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Ford Motor Co. and China’s Contemporary Amperex Technology Co. Ltd. are considering building a battery manufacturing plant in Michigan in a complex arrangement designed to reap new tax benefits without running afoul of US-China political sensitivities.

The state has emerged along with Virginia as a potential home of the multibillion-dollar facility, according to people familiar with the matter, who asked not to be identified discussing sensitive negotiations. The factory will provide lithium iron phosphate batteries for Ford’s electric models.