Automakers are increasingly collaborating to navigate the shift towards electric vehicles (EVs). Hyundai and General Motors have announced their plans to collaborate on future product development in response to this trend.
In Japan, collaborations are also underway, with Toyota and Subaru working together on future EVs, and Nissan, Mitsubishi, and Honda teaming up to share technology. However, collaboration can be complicated when potential partners are considered adversaries.
On September 12, lawmakers in the U.S. House of Representatives passed a bill that may restrict electric vehicle tax credits and disrupt crucial partnerships for American automakers. The bill, titled the End Chinese Dominance of Electric Vehicles in America Act of 2024, was introduced by Rep. Carol Miller (R-WV). It proposes to strip EV manufacturers of eligibility for tax credits up to $7,500 if they use battery technology licensed from China. Miller stated that the bill aims to prevent American taxpayer money from benefiting China and emphasizes protecting American resources and manufacturing.
The bill has faced opposition from various quarters. Rep. Debbie Dingell (D-MI) argued that the legislation could lead to American job losses and reduce the competitiveness of American companies. Rep. Judy Chu (D-CA) highlighted a provision that could unfairly target immigrants from adversary countries. The White House also opposed the bill, citing concerns that it could increase taxes on American consumers, harm auto manufacturers, threaten jobs, and hinder progress toward energy security and combatting climate change.
One of the bill’s prominent opponents is the United Auto Workers (UAW) union, which represents workers from Detroit’s major automakers. The UAW has argued that the bill would negatively impact union jobs and threaten battery manufacturing jobs in Michigan.
Some of Detroit’s automakers have already formed partnerships with Chinese entities for advanced EV battery technology. Ford is building its Blue Oval Battery Park in Michigan and plans to use CATL’s lithium iron phosphate battery technology. General Motors is also in discussions to procure EV batteries utilizing CATL technology, which would be assembled in the United States.
CATL unveiled its latest LFP-based EV battery, the Shenxing Plus, at the Beijing Auto Show in April 2024. The battery offers a range of over 1,000 kilometers (621 miles) on a single charge and can provide 370 miles of range after just 10 minutes of charging.
Ford and GM’s interest in CATL’s technology is driven by the potential to address one of the main concerns of American EV buyers: range. The Shenxing Plus battery promises longer driving range and faster charging speeds, addressing critical consumer demands.
