A major Chinese manufacturer of batteries for electric cars is delaying its decision on a new plant in North America due to rising tensions around Taiwan. The company, called CATL, is close to choosing a location in Mexico or the United States. He only wants to announce it later now that the visit of American top politician Nancy Pelosi to Taiwan has led to angry reactions in China, reports Bloomberg news agency based on insiders.
CATL would announce the location of the North American factory, which is to supply Tesla and Ford with batteries, sometime in the coming weeks. Now, according to Bloomberg sources, the company has decided not to officially release the final choice until September or October. CATL was not immediately available for comment.
CATL, the world’s largest producer of batteries for electric cars, is said to have targeted two locations in Mexico close to the Texas border. In addition, CATL is considering multiple locations for a factory in the US.
Pelosi, speaker of the US House of Representatives, landed in the Taiwanese capital Taipei on Tuesday. China sees this as a provocation, because the Asian superpower regards the island as a renegade province. The Chinese military has announced military exercises near Taiwan in response to the visit.
The tensions that have arisen are no reason for CATL to completely abandon a North American factory. China did introduce economic sanctions against Taiwan this week. The country blocked the import of many Taiwanese foods.
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss out on any of the stars.