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.
CATL isn’t happy with the U.S. right now
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.
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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