Tesla said to be mulling U.S. battery plant with supplier CATL

Tesla is said to be mulling a potential U.S.-based battery plant with one of its suppliers, CATL, according to a new report.

Bloomberg reported yesterday that Tesla is potentially looking to build an electric vehicle battery cell production facility somewhere in the United States with CATL, citing people familiar with the matter.

Tesla has not confirmed these reports, and Rohan Patel, the automaker’s Senior Global Director of Public Policy, did not respond to Teslarati‘s request for comment.

The report indicates that Tesla discussed the rumored plans with the White House, aiming to gain clarification on rules relating to the Inflation Reduction Act (IRA). The IRA rules can qualify certain electric vehicles for either some or all of the $7,500 tax credit for purchasing a clean energy vehicle.

One of the stipulations is that a portion of the battery pack be manufactured in the U.S., which is why Tesla and CATL could be looking to launch a partnership within the country.

Ford announced a similar deal with CATL last month, looking to build a battery manufacturing plant within the U.S. to take advantage of these incentives.

Ford announces $3.5B EV battery production plant with CATL’s help

According to the report, Tesla is considering Texas, where it moved its Headquarters in 2021. It also operates the Gigafactory Texas plant in the state, just outside of Austin.

It would make sense to build a battery cell facility in the state as Tesla plans to bolster a large-scale manufacturing operation in Austin as the plant continues to ramp.

Tesla is also working to begin construction on its next facility in Nuevo Leon, Mexico, which would make the potential cell plant location ideal for both facilities.

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Tesla said to be mulling U.S. battery plant with supplier CATL


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