Tesla Reportedly Mulling U.S. Battery Plant with Chinese Supplier CATL

Tesla Reportedly Mulling U.S. Battery Plant with Chinese Supplier CATL

Tesla is said to be considering a potential U.S.-based battery plant with one of its suppliers, CATL, according to a March 30 report from Bloomberg, 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 indicated 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 EVs for either some or all of the $7,500 tax credit for purchasing a clean energy vehicle.

One of the stipulations is a portion of the battery pack must 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 in Feburary, looking to build a battery manufacturing plant within the U.S. to take advantage of these incentives.

According to the report, Tesla is considering Texas, where it moved its headquarters in 2021, and operates the Gigafactory Texas plant just outside of Austin.

It would make sense to build a battery cell facility in the state, as Tesla bolsters a large-scale manufacturing operation plan in Austin.

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.

We thank Teslarati for reprint permission.

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