Ford plans to license technology from Chinese battery group CATL to use in a $3.5bn factory it plans to build in Michigan as it accelerates a push into electric vehicles.
The carmaker’s deal with the world’s biggest battery producer comes as new US tax credits for EVs take effect under the Inflation Reduction Act climate law that passed last year.
However, the law prevents cars containing components from a “foreign entity of concern” — a reference to China, Russia, Iran and North Korea — from receiving these tax credits.
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