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

Beijing, March 31 (Xinhua) Tesla is seeking to build a new battery factory in the United States and is working with Chinese battery giant Ningde Times, an arrangement that could spark controversy in the United States, according to people familiar with the matter.

Tesla has discussed with the White House in recent days plans to build a factory in the Ningde era, according to people familiar with the matter. Deputy Tesla wants the White House to clarify the provisions of the "inflation reduction Act" to be finalised by the Biden administration this week. Rohan Patel, Tesla's senior global director of public policy, participated in the discussion.

Tesla hopes to strike a deal similar to that between Ford and Ningde to build a wholly owned plant in the United States. Last month, Ford announced that it would use Ningde-era technology to build a battery plant in Michigan. At present, Tesla is in expansion mode, using his $22 billion cash to increase production and reduce costs in response to increasing competition. The Ningde era is key to Tesla's plan, which makes lithium iron phosphate batteries, a chemical cheaper than nickel batteries used in the West.

Tesla is considering building a new battery plant in Texas to supply batteries to the electric vehicle assembly plant there, although the exact location has not yet been determined, according to people familiar with the matter. Similar to Ford's transaction structure, Tesla will own and operate the plant and obtain a technical license from the Ningde era.

For now, the US auto industry has been lobbying to influence how the Treasury interprets the requirements of President Biden's signature climate plan. The law aims to rid the US of its dependence on Chinese battery materials by motivating the US supply chain of electric vehicles. One of the specific provisions that has been strongly lobbied is 30D, which aims to withhold consumer tax credits for electric vehicles that contain a certain amount of China-related materials in their batteries.

However, the Ford-Ningde-era partnership proposal has been opposed by lawmakers including West Virginia Democratic Senator Joe Manchin (Joe Manchin) and Florida Republican Senator Marco Rubio (Marco Rubio). They argue that the co-operation will allow the Ningde era to benefit from US subsidies. Ford said the Ningde era would not receive any US taxes from the deal. Dan Levy, an analyst at Barclays, said in a research note that the deal between Tesla and Ningde could face some political resistance, similar to what Ford saw.

Tesla, the White House, the Ningde era and Patel have yet to comment.

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