Final month, stories surfaced about Ford Motor Firm’s plans to construct a brand new battery plant within the US along with China’s EV battery powerhouse CATL. 

The states of Michigan and Virginia have been listed as favorites to host the brand new facility, however it appears just like the Outdated Dominion voluntarily dropped out of the race.

Virginia Governor Glenn Youngkin, who’s a possible Republican candidate for the workplace of US President in 2024, rejected the $3.6 billion funding as a result of it concerned a partnership with China’s Modern Amperex Expertise Co. Ltd., higher often called CATL.

In an announcement to The Detroit Information, Glenn Youngkin spokesperson Macaulay Porter mentioned the mission was refused as a result of CATL has ties to the Chinese language Communist Celebration.

“Whereas Ford is an iconic American firm, it turned clear that this proposal would function a entrance for the Chinese language Communist occasion, which might compromise our financial safety and Virginians’ private privateness.

Virginians will be assured that corporations with recognized ties to the Chinese language Communist Celebration will not obtain a leg up from the Commonwealth’s financial incentive packages. When the doubtless damaging results of the deal have been realized, the plant proposal by no means reached a ultimate dialogue stage.”

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Youngkin rejected the mission in December, with the choice mentioned to value one of many poorest components of Virginia no less than 2,500 jobs. The plant would have been constructed on the Southern Virginia Mega Web site at Berry Hill in Pittsylvania County, within the Southside area of south-central Virginia, based on an earlier report from the Richmond Occasions-Dispatch.

The plant would have produced CATL lithium iron phosphate (LFP) batteries for Ford EVs after the automaker mentioned it might add LFP battery cells to its portfolio to cut back its reliance on battery minerals similar to nickel and cobalt.

Ford beforehand mentioned CATL would provide full LFP battery packs for the electrical Mustang Mach-E in North America beginning this 12 months, and the Ford F-150 Lightning electrical pickup truck from 2024. The Chinese language agency is already a battery provider to the Blue Oval.  

Now that Virginia rejected the funding, Michigan stays among the many finalists striving to draw the joint-venture mission, based on two sources conversant in the scenario. Ford is reportedly two massive websites in Marshall, Grand Ledge close to Lansing, and Mundy Township in Genesee County.

Had the mission moved ahead in Virginia, it might have delivered one other blow to Michigan after Ford’s residence state misplaced an $11 billion EV battery funding to Tennessee and Kentucky in September 2021.