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

CTOnews.com, February 11 (Xinhua)-- Ford Motor and Ningde Times plan to build a $3.5 billion lithium iron phosphate battery plant in Marshall, Michigan, ending months of intense site selection, according to Bloomberg, Reuters and other reports.

The plant will be located about 100 miles west of Detroit and is expected to create about 2500 jobs, and the deal will be announced as early as Monday, according to people familiar with the matter. Both Ford and Ningde declined to comment.

Tuyuan Pexels has previously reported that the two sides are exploring a new ownership structure for the co-operation plant, in which Ford takes a 100 per cent stake in the plant, including construction and infrastructure, but the plant is operated by the Ningde era and retains its battery manufacturing technology.

Simply put, 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 from the Ningde era.

CTOnews.com briefly popularizes science. In August last year, the US government promulgated the inflation reduction Act, which includes a subsidy of $430 billion (currently about 2.92 trillion yuan) to support the production and investment of electric vehicles, key minerals, clean energy and power generation facilities, but nine of these tax breaks are based on production and sales in the United States or North America. So this restriction can be bypassed if it is 100% controlled by an American company.

In addition, according to the latest requirements, battery production materials must also be purchased mainly locally. For example, the production of electric cars in the United States can enjoy a federal tax credit of up to $7500 per vehicle, and battery production will receive a tax credit of up to $35 per kWh.

Last July, Ford said it planned to localize 40GWh battery capacity in North America from 2026. It also announced an agreement with CATL to try to supply batteries to North American Mustang Mach-E models from 2023, and said it would continue to explore cooperation around the world.

Expand reading: "Ford China confirms: Ningde era becomes its power battery supplier"

"Ford Motor and the Ningde era are considering building a battery factory in the United States, and various models are under discussion."

"Ford: will purchase lower-cost lithium iron phosphate batteries from Ningde era to catch up with Tesla."

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