While Paul Dabbar and DJ Nordquist are entitled to their opinions (“Ford’s pact with Chinese EV battery maker is a sucker punch to American taxpayers”), they have to be primarily based on details. Unfortunately, most of what they assert in regards to the new electric-vehicle battery manufacturing facility Ford
F,
plans to construct within the United States is flawed.
Nordquist and Dabbar write that the Michigan plant will likely be a three way partnership with Contemporary Amperex Technology 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 could have no possession or management of the plant. CATL will get solely a licensing payment from Ford for the correct to make use of battery-chemistry expertise that’s owned by and solely accessible from CATL.
The authors counsel that the brand new plant is also a part of China’s Belt and Road infrastructure program. That is just not true. China is just not concerned on this challenge. However, Ford’s $3.5 billion funding will assist fulfill targets of the U.S. Inflation Reduction Act, together with to revive home innovation and manufacturing and cut back carbon emissions.
They additionally write that utilizing CATL’s main expertise will hurt the U.S. EV battery business. That isn’t true, both. The world’s 10-largest battery producers are headquartered in Asia, and U.S. automakers rely fully on imports for lithium iron phosphate, or LFP, EV batteries. This Ford plant will likely be an enormous step in increasing the U.S. EV battery business and, within the course of, create 2,500 good-paying jobs in our firm’s residence state of Michigan.
“ What Ford is doing by developing this LFP battery plant in Michigan is better for our customers, for our company, and for the U.S. ”
Here’s what’s true in regards to the manufacturing facility: A Ford subsidiary alone will construct, personal and function the plant. It will rent and make use of individuals who will produce EV batteries there, incorporating Ford’s personal layer of innovation. Those batteries will likely be put in in Ford autos manufactured at different Ford factories, together with within the U.S., the place we offer work for extra hourly staff than any automaker. As a end result, high-quality, high-performing EVs will likely be extra inexpensive to extra Ford prospects.
Of course, we might have caught with the established order and, like Tesla
TSLA,
Honda Motor
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and plenty of different auto firms, relied completely on importing these batteries from China. Instead, what Ford is doing by creating this LFP battery plant in Michigan is healthier for our prospects, for our firm, and for the U.S.
Christopher Smith is chief authorities affairs officer at Ford Motor Co.
Read the commentary article: Ford’s pact with Chinese EV battery maker is a sucker punch to American taxpayers
Source web site: www.marketwatch.com
