Opinion: Ford rebuts criticism of enterprise with Chinese language battery maker: ‘An enormous step in increasing the U.S. EV battery trade.’
Whereas Paul Dabbar and DJ Nordquist are entitled to their opinions (“Ford’s pact with Chinese language EV battery maker is a sucker punch to American taxpayers”), they have to be based mostly on info. Sadly, most of what they assert in regards to the new electric-vehicle battery manufacturing facility Ford
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plans to construct in america is flawed.
Nordquist and Dabbar write that the Michigan plant will likely be a three way partnership with Up to date Amperex Know-how Co. Ltd.
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CATL will obtain U.S. tax {dollars}, and CATL will run the plant. None of that’s true. CATL isn’t investing something and can have no possession or management of the plant. CATL will get solely a licensing price from Ford for the best to make use of battery-chemistry know-how that’s owned by and solely out there from CATL.
The authors counsel that the brand new plant is also a part of China’s Belt and Street infrastructure program. That isn’t true. China just isn’t concerned on this venture. Nevertheless, Ford’s $3.5 billion funding will assist fulfill objectives of the U.S. Inflation Discount Act, together with to revive home innovation and manufacturing and scale back carbon emissions.
Additionally they write that utilizing CATL’s main know-how will hurt the U.S. EV battery trade. That isn’t true, both. The world’s 10-largest battery producers are headquartered in Asia, and U.S. automakers rely totally on imports for lithium iron phosphate, or LFP, EV batteries. This Ford plant will likely be a giant step in increasing the U.S. EV battery trade and, within the course of, create 2,500 good-paying jobs in our firm’s house state of Michigan.
“ What Ford is doing by creating this LFP battery plant in Michigan is best for our prospects, for our firm, and for the U.S. ”
Right here’s what’s true in regards to the manufacturing facility: A Ford subsidiary alone will construct, personal and function the plant. It’ll rent and make use of individuals who will produce EV batteries there, incorporating Ford’s personal layer of innovation. These batteries will likely be put in in Ford automobiles manufactured at different Ford factories, together with within the U.S., the place we offer work for extra hourly staff than any automaker. In consequence, high-quality, high-performing EVs will likely be extra inexpensive to extra Ford prospects.
In fact, we may have caught with the established order and, like Tesla
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and plenty of different auto corporations, relied solely on importing these batteries from China. As a substitute, what Ford is doing by creating this LFP battery plant in Michigan is best for our prospects, for our firm, and for the U.S.
Christopher Smith is chief authorities affairs officer at Ford Motor Co.
Learn the commentary article: Ford’s pact with Chinese language EV battery maker is a sucker punch to American taxpayers