Feb 10 (Reuters) – Ford Motor Co (F.N) is set to announce as soon as Monday it plans to build a $3.5 billion lithium iron phosphate battery plant in Michigan, sources told Reuters.
Ford is expected to own and operate the plant with Chinese battery company China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ) as a technology partner to help develop the batteries, sources said. Ford declined to confirm the plans.
CATL, which declined to comment, has signed technology licensing agreements with Hyundai MOBIS in 2021 and Arun Plus in 2022 as a way of generating stable cash without taking big risks and making investments.
The rules were aimed at weaning the United States off the Chinese battery supply chain. By Ford owning the plant outright, it may help ensure the batteries produced can qualify for tax credits.
A spokesperson for Youngkin said last month that “while Ford is an iconic American company, it became clear that this proposal would serve as a front for the Chinese Communist party.”
The Michigan Economic Development Corporation declined to comment.
In January, Michigan Governor Gretchen Whitmer told the Detroit News Youngkin’s decision was a “political determination.”
Whitmer announced in October Chinese battery company Gotion High Tech (002074.SZ) would open a new $2.36 billion plant in Big Rapids, Michigan creating 2,350 jobs. The facility is expected to produce up to 150,000 tons of cathode material and 50,000 tons of anode material annually.
In July, Ford said it plans to localize 40 GWh of battery capacity in North America starting in 2026. It also announced an agreement with CATL to explore their supplying battery packs for Mustang Mach-E models for North America starting in 2023 and said they would discuss cooperation for batteries in Ford vehicles around the world.
