Shulou(Shulou.com)11/24 Report--

CTOnews.com, Dec. 15 (Xinhua)-- Ford Motor Company and Chinese battery giant Ningde Times are considering building a battery plant in Michigan or Virginia to get tax breaks, Bloomberg reported Wednesday.

Tuyuan Pexels Bloomberg quoted people familiar with the matter as saying that the multibillion-dollar plant will produce lithium iron phosphate batteries for Ford's electric vehicles. The two companies are considering an ownership structure in which Ford will 100% own the plant, including infrastructure, while Ningde Times will operate the plant and provide technology to make batteries, the report said.

According to the report, such an arrangement would make the facility eligible for a production tax credit under the new inflation reduction Act, without the need for direct financial investment in the Ningde era.

CTOnews.com learned that in October, Reuters reported that the Ningde era had slowed its plans to invest in battery plants in North America because of concerns that new U.S. rules on purchasing materials would push up costs.

"the Ningde era is still considering investing in the US and we have not made a decision yet," the Ningde Times said in an emailed statement. "there are a variety of models under discussion about our investment in the US, all of which are based solely and solely on business considerations."

"our negotiations with the Ningde era are continuing and we have no new news to announce," Ford said in a statement. "

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