CATL, China’s Biggest EV Battery Maker, Postponed Their U.S. Production Plant After Nancy Pelosi’s Visit to Taiwan

Learn why Sen. Nancy Pelosi’s Taiwan visit prompted CATL, the world’s largest EV producer, to postpone its plans to build U.S.-based battery production facilities.
Written by Jason Crosby
Reviewed by Kathleen Flear
Sep 8, 2022
The U.S. and China have what could be described at best as a contentious relationship. As occasional trade allies and full-time economic rivals, the moments when both countries are getting along are to be savored. But things have gone from savory to sour quickly, in light of Senator Nancy Pelosi’s impromptu visit to Taiwan. 
Now, after Pelosi’s visit,
CATL
, China’s most extensive
EV
battery producer, has paused its plans to build a U.S.-based production facility.
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CATL isn’t happy with the U.S. right now

Contemporary Amperex Technology Ltd., or CATL, is the world’s largest producer of EV batteries, and not just in China. According to Bloomberg, the Chinese-based manufacturer has been eyeing two locations in Mexico, close to
Texas
, and a few spots on American turf, as well. 
CATL had been in an advanced stage of site selection and negotiating incentives, and the automotive industry had been waiting for the announcement of CATL’s selected locations in the early fall. However, the U.S. locations have been paused—likely in a snub that was spurred by Pelosi’s Taiwan visit. 

What will CATL do with its plans to build facilities in the U.S.? 

The company plans to wait until later in the year, likely September or October, before they make any moves on building facilities in the U.S. This is probably in order to ensure that they don’t appear to support the U.S.’s decision to maintain sympathetic relations with Taiwan, which the Chinese government views as its own territory. 
Hopefully, North America sees the development of several CATL facilities—and while it may lead to continued dependence on
Chinese manufacturers
for certain EV products, it will strengthen the surrounding supply chain considerably. 

CATL was going to be the main EV battery supplier for Ford and Tesla’s EVs

These multi-billion dollar facilities would have been the battery suppliers for Ford and Tesla, who are no doubt displeased that the plans have been suspended. But CATL hasn’t decided to cancel their facility building projects completely—if anything, it’s more of a waiting game. 
Hopefully, both Ford and Tesla don’t miss out on having such a strategic advantage as Tesla competes with other automakers, and Ford continues pushing to electrify their entire lineup.

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Dairyland
DirectAuto
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Nationwide
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