Tesla-CATL U.S. Battery Factory Might Be in the Works, Says Report

Photo: CATL

Discussions with the White House involve potential Texas location and Inflation Reduction Act regulations.

Tesla is reportedly exploring the possibility of constructing a battery plant in the United States, in collaboration with China’s leading electric vehicle battery manufacturer, Contemporary Amperex Technology Co. Ltd. (CATL).

According to unnamed sources cited by Bloomberg, Tesla recently discussed these plans with the White House, seeking clarification on the Inflation Reduction Act rules, which the Biden administration is finalizing this week.

Tesla aims to pursue a deal similar to the one announced by Ford Motor Co. last month in Michigan, where the U.S. automaker will wholly own the plant while collaborating with CATL.

Texas is a potential location for Tesla’s battery plant, which would supply its EV assembly facility in the state. However, the final location is yet to be determined.

The U.S. auto industry has been lobbying to influence the Treasury Department’s interpretation of requirements in President Biden’s climate package. The law aims to reduce U.S. dependence on China for battery materials by encouraging a domestic supply chain for EVs.

New guidance from the U.S. Treasury Department regarding battery component sourcing is set to be announced today, and thusly affect federal tax credits applicable to select EVs using non-U.S. battery cells.