Tesla is considering setting up a battery factory in the United States

In cooperation with the Chinese CATL.


A recent rumor claims that Tesla and one of its suppliers, CATL, are looking into the idea of opening a battery manufacturer in the US.


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


Tesla is considering setting up a battery factory



  • Tesla has not confirmed these reports.


  • The report indicates that Tesla discussed the plans with the White House, with the aim of obtaining clarification on the rules related to the Inflation Reduction Act (IRA).


  • IRA rules can qualify certain electric vehicles for some or all of the $7,500 tax credit for purchasing a clean-energy vehicle.


  • One condition is that part of the battery pack be manufactured in the US, which is why Tesla and CATL may be looking to launch a partnership within the country.


  • Ford announced a similar deal with CATL last month, as it looks to build a battery manufacturing plant within the United States to take advantage of these incentives.


  • According to the report, Tesla is considering moving its headquarters to Texas in 2021.


  • It also operates a Gigafactory Texas in the state, just outside of Austin.


  • It would make sense to build a battery cell facility in the state as Tesla plans to boost a large-scale manufacturing operation in Austin as the factory continues to decline.


  • Tesla is also working to begin construction on its next facility in Nuevo León, Mexico, which would make the potential cell factory site ideal for both facilities.


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