Ford Motor Co. is weighing a deal with a Chinese battery manufacturer that would allow China to take advantage of massive U.S. tax breaks, according to a Bloomberg report.
The potential ownership structure between Ford and China’s Contemporary Amperex Technology Co. Ltd. (CATL) would allow CATL to take advantage of tax benefits under President Joe Biden’s new Inflation Reduction Act (IRA), according to Bloomberg.
The companies intend to build a multi-billion-dollar battery manufacturing plant in either Michigan or Virginia to provide lithium iron phosphate batteries for Ford’s line of electric vehicles. The plan gives Ford ownership of the plant, including all buildings and structures, but relinquishes control of factory operations and the technology used to build the car batteries to CATL, the outlet reported.