Chinas CATL delays announcement of multi billion dollar battery factory project
Hardware

China’s CATL delays announcement of multi-billion dollar battery factory project in North America

The world’s largest manufacturer of traction batteries is China’s Contemporary Amperex Technology Co. GmbH. (CATL), has decided to delay the announcement of a multi-billion dollar North American factory project to supply local automakers Ford and Tesla.

    Image source: Mark Potterton/unsplash.com

Image source: Mark Potterton/unsplash.com

The manufacturer was previously considering building at least two plants in Mexico, near the Chinese border, and was also looking at sites to build a plant in the United States. The final selection was due to be announced in the coming weeks but has now been canceled for a number of reasons. CATL is now planning to delay the announcement until September or October, according to Bloomberg sources. Official representatives of the company did not comment on the issue.

AT Bloomberg reported that CATL is considering Mexico’s Ciudad Juarez and Saltillo for construction, and the company intends to invest at least $5 billion in the project. According to some reports, locations in Mexico and the United States are still being considered and the Company does not intend to deviate from plans in the future.

However, CATL is also considering the prospects for construction in North America and considering legislative initiatives by US Senators. In particular, a key element of the bill is the need to mandate the use of some minerals in the manufacture of batteries that are mined or processed in countries with which the United States has a free trade agreement, so that vehicles using them are eligible for perks for buyers . It is known that the relevant agreement between the United States, Mexico and Canada was concluded in July 2020.

It was previously reported that CATL is the world’s largest traction battery maker, controlling about a third of the segment, and overall Chinese companies account for more than 56% of the battery market.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

Add Comment

Click here to post a comment