A person familiar with the matter revealed that in response to the United States' new regulations on battery material procurement, it will push up the cost of battery. The leader of China's power battery company Ningde Times decided to slow down plans to set up factories in North America.
It was reported earlier that in the world's largest electric vehicle battery manufacturer Ningde Times earlier this year, it has taken into account the new factories in the United States and Mexico.
Reuters on Friday (October 21) quoted anonymous insiders that the Ningde Times planned to set up a factory in northern Mexico, South Carolina or Kentucky Investment to expand the company's business map to China.In the Ningde Times, it controlled nearly half of the power battery market in China to supply power batteries including Ford and BMW and other European automotive companies.
People familiar with the matter said that since the U.S. government has implemented a new limit on the procurement of power battery materials in late August, the Ningde Times executives have slowed to the potential location for the establishment of a new plant in North America.
Ningde era did not immediately respond to the comment request.
Eurasian executives such as Volkswagen, BMW and Hyundai have called on the US Legislative Administration to give them a new standard for procurement of power battery materials for them in order to apply for tax subsidies.
The reduction of the inflation bill led by the US Democratic Senator Manchin, which requires electric vehicle manufacturers to by 2024. 50%of the key materials used in power batteries need to be purchased in North America or the United States. As of 2026, thisOne ratio will rise to 86%.
