CATL pauses plans for North America battery plant
Chinese electric vehicle (EV) battery giant CATL put the plans for a North America gigafactory on hold following House Speaker Nancy Pelosi's trip to Taiwan.
Contemporary Amperex Technology Co. Ltd. (CATL) announced a $5 billion investment into a gigafactory to be built in North America in March, only to choose if the location will be US or Mexico.
CATL was expected to announce the location of the gigafactory in the coming weeks, either in Mexico or the US. Now, amid tensions over Taiwan, Nancy Pelosi's visit has urged CATL to wait until September or October to make the announcement, according to Bloomberg. Pelosi is the highest-ranking politician to visit Taiwan in 25 years, which is called "provocative" by China.
Despite the setback, CATL won't be moving away from the North American gigafactory project, according to Bloomberg.
CATL's expansion plans aim to increase the current production capacity of 145 GWh to 579 GWh by 2026. The North American gigafactory will primarily serve to reduce the costs of import duties and become a leading supplier of EV batteries in the region.