Ford: Suspends construction of battery factory with CATL
– Influenced by local opposition public opinion –
-Republicans are critical of Chinese companies coming to the US-
A summary from Joongang Ilbo.
A battery factory is scheduled to be built in Marshall, Michigan.
”The construction project of Ford of the US and CATL of China will be suspended.”
A $3.5 billion automotive battery factory to be built in Marshall, Michigan.
“We are halting construction until we are confident the plant can operate competitively,” Ford said in a statement.
Ford’s February announcement:
In February, Ford announced that it would “employ 2,500 people at Marshall and work with CATL.”
CATL of car battery:
CATL, the leader in automotive batteries, operates 13 factories around the world.
This is the first time that a factory has been established in the United States. CATL was to provide technology, equipment, and labor.
Ford’s decision:
Guidehouse Insight: Researcher Sam Abuelsamid
“This was influenced by the UAW strike situation as well as by opposing public opinion in the region,” the analysis said.
“We don’t want anything associated with Chinese companies.”
Constraints of the US Inflation Control Act:
“Purchase battery materials from countries that have FTAs with the United States.”
If the above conditions are met, an “inflation control law” has been enacted that provides subsidies.
Starting this year, at least 50% of all parts must be manufactured in North America.
United Auto Workers strike:
”Factories of three automakers, including Ford,” are currently carrying out simultaneous strikes.
The strike also spread to “38 GM and Stellantis parts supply centers.”
US politics are also critical:
Up until now, there has been discussion about “building a joint venture factory in the United States using Chinese technology and capital.”
The purpose of the IRA law is to “build a battery supply network that is not dependent on China.”
https://s.japanese.joins.com/
Chinese batteries: kicked out of the US and set to enter the EU
We will provide you with a summary of articles published in Joongang Ilbo.
Chinese battery companies:
Japan has been eyeing the European Union (EU) from an early stage.
Chinese battery companies have been barred from expanding into the United States.
South Korean companies are rapidly taking over the EU market share that they secured early on.
Institute of International Trade and Commerce
On September 14th, we compiled a report titled “Trends and suggestions in the EU battery market, the biggest battleground for global batteries.”
EU battery market share:
China’s EU battery market share expanded from 14.9% in 2020 to 34.0% last year.
On the other hand, South Korea’s share decreased from 68.2% to 63.5%.
The share gap between the two countries has narrowed from 50 percentage points to 20 percentage points.
CATL invests in Hungary:
CATL is the world’s number one battery company.
Breaking from the practice of “order first, invest later”, we will begin a 100GW capital investment in Debrecen, Hungary.
Cost of battery production equipment:
Capital expenditures (CAPEX) of 2 trillion won (203 billion yen) will be incurred to build a 20GW scale battery production facility.
https://s.japanese.joins.com/
Ford: Temporarily suspends construction of EV battery factory in the US
We will provide you with a summary of articles published by JETRO.
Ford: T.R. Reed Public Relations
“Automotive News” from September 25th
Construction work on the battery manufacturing plant will be temporarily suspended until “we are confident that the plant can operate competitively.”
“We have not yet made final decisions regarding planned investments,” he said.
UAW: President Sean Fein
This is “Ford’s excuse to cut jobs.”
“Detroit 3” is trying to threaten us with “closing factories that are not yet in operation.”
We are simply asking for a just transition from gasoline-powered cars to EVs.
Chairman of the Ways and Means Committee of the U.S. House of Representatives
Rep. Jason Smith
(Republican, Missouri)
Energy and Commerce Committee Chair
Rep. Cathy McMorris Rogers
(Republican, Washington State)
China Special Committee Chairman
Congressman Mike Gallagher
(Republican, Wisconsin)
It requested that Ford “submit documents related to its partnership with CATL.”
It calls for “CEO Jim Farley to testify before Congress.”
Rep. Smith and Rep. Gallagher:
Regarding the project in July 2023,
Security concerns – CATL’s association with the Chinese Communist Party (CCP)
Concerns about forced labor – Concerns about forced labor in Xinjiang Uyghur Autonomous Region
They sent a “letter requesting transparency in management” to Ford.
Reuters: September 27, 2023
https://www.jetro.go.jp/