Ford Is seeking to shield itself from U.S.China You can avoid tensions by choosing to be the sole owner of the factory, rather than licensing technology from CATL. CATL provides batteries for Tesla and BMW.

“This project is aimed at de-risking that, by actually building out the capacity and capability to scale this technology in the United States, where Ford has control, over the manufacturing, over the work force,” Lisa Drake, Ford’s vice president of E.V. In industrialization a Conference call with journalists

Ford’s contract with CATL includes provisions to work through difficulties that arise between the two countries. “Of course we’ve thought about it,” Ms. Drake stated the following, but did not give any further information.

FordGeneral Motors is building new battery plants with Korean partners. Ford Kentucky has two existing battery plants. a Third in Tennessee with SK On. G.M. G.M. a It jointly owned a battery plant in Ohio with LG Energy Solution. The partners also own two additional plants in Tennessee, Michigan, and Tennessee.

Ford’s new plant will produce batteries that include lithium, iron and phosphate, a LFP is the combination. Because they don’t contain expensive materials like nickel and cobalt, these batteries can be cheaper. LFP batteries have the added advantage of being longer-lasting. However, nickel and cobalt batteries hold more energy which allows electric cars to travel farther without needing to recharge.

Ms. Drake stated that Ford We had considered building the factory in Canada, Mexico or elsewhere but it wasn’t feasible. a The Inflation Reduction Act, signed by President Biden last year, was implemented at the U.S. Site. Companies that construct battery factories in America were eligible for tax incentives under the act. Tax credits are available to car buyers for electric cars made in North America, which include raw materials and batteries from another U.S. ally.

“The I.R.A. was incredibly important for us, and frankly it did what it intended to do,” She said. “It allowed the United States to capture 2,500 technical jobs. It is a big win for the U.S.”