People familiar with the matter: Ford and Ningde Times considered building a battery f

Ford Motors and Ningde Times are considering building a battery factory in Michigan, USA, and enjoy new tax discounts through complex arrangements without touching the political sensitivity of China and the United States.

Bloomberg quoted people familiar with the matter and revealed that Michigan and Virginia are expected to become the place where this investment may reach billions of dollars.The factory will provide Lithium iron phosphate battery for Ford's electric vehicles.

A person familiar with the matter said that the two companies are considering a new ownership structure that owns 100%of Ford, including buildings and infrastructure, and Ningde Times is responsible for operating and has battery manufacturing technology.Through such arrangements, the factory does not have direct financial investment in the Ningde era, so that the rich production tax under the US inflation reduction bill can be enjoyed.

People familiar with the matter also pointed out that due to the intense geopolitical relations between China and the United States, the Chinese government does not encourage the Ningde era to invest in the United States.Bloomberg reported in August that after the visit of the US House of Representatives Perosi's visit to Taiwan, the tension between China and the United States further intensified, the Ningde Times suspended the plan to build a new plant in North America this summer.

A person familiar with the matter said that the proposal was only a option since the August signed law in August, and it was still far away from finalization.The unknown requirements of the inflation reduction bill have also affected the decision, and the possibility of setting up factories in Mexico and Canada has not been excluded.

The US Department of Finance will issue guidelines by the end of this month to finalize the content requirements and tax credits of the inflation reduction bill.

"Ningde Times is still considering investing in the United States, we have not made a decision," this battery manufacturer said in an email statement."There are many models that we are discussing in the United States, and all options are pure and only based on business considerations."

The company said that the news of the Chinese government's opposition to Ningde Times in the United States was "lost".The company has reached an agreement to sell batteries to Ford for flagship products F-150 Lightning and Mustang Mach-E.

Ford stated in the statement, "The negotiations with the Ningde era are still continuing, and we have no new news to announce."