Chinese battery manufacturer CATL is zeroing in on a location for an EV battery factory in the United States that will supply the likes of Ford and BMW with batteries.
Reports of CATL’s plans for an EV battery factory first emerged in late March. The most likely location for the $5 billion plant is thought to be either South Carolina or Kentucky, areas where BMW and Ford already have assembly plants.
After speaking with unnamed sources, Auto News understands that if the site is located in South Carolina, it could begin battery production in 2026.
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BMW confirmed in a recent statement that it is “intensively examining the possibility of establishing a battery factory” in North America and sourcing battery materials in the region. Ford, meanwhile, is already moving forward with plans to build two battery plants in the U.S. alongside battery supplier SK Innovation.
Previous reports have suggested that CATL’s U.S. battery factory could produce both nickel-manganese-cobalt cells and lithium iron phosphate cells and in addition to supplying Ford and BMW, could also supply Tesla. CATL has a roughly 30 per cent share of the global electric vehicle battery market.
Auto News notes that the battery giant is gearing up to open its first battery plant outside China later this year. Located in Arnstadt, Germany, the factory is costing CATL €1.8 billion ($1.89 billion) and will supply BMW and other car manufacturers. It will have an initial annual capacity of 8 gigawatt-hours.
The establishment of a factory in the U.S. will prove to be particularly important for BMW as it hopes to sell two million electric vehicles by 2025 and have EVs account for at least half of its global deliveries by 2030.
A number of other battery manufacturers are planning to establish factories in the States. In addition to CATL and SK Innovation, they include LG Energy Solution, Samsung, and Panasonic.
