Republican lawmaker seeks details of Tesla relationship with Chinese battery company CATL
Tesla Tuesday to detail its relationship with Chinese battery manufacturer CATL amid concerns electric vehicle subsidies are flowing to foreign entities raising security concerns.
The chair of the House Ways and Means Committee, Representative Jason Smith, asked Tesla CEO Elon Musk in a letter if the EV maker has contracts with CATL or is considering contracts. Smith said the committee is concerned CATL «may be trying to negotiate other agreements like the agreement with Ford.»
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The auto industry is watching how new rules around future electric-vehicle tax credits will be implemented as they make investment decisions on producing batteries for their transition to electric vehicles.
In 2022, Congress passed the $430 billion Inflation Reduction Act which will bar future electric-vehicle tax credits if any battery components are manufactured or assembled by a «foreign entity of concern.»
The foreign entity of concern rules are aimed at weaning the United States from Chinese supply chains and come into effect in 2024 for completed batteries and 2025 for critical minerals used to produce them. The question is how what precisely constitutes a «foreign entity of concern», and so far no foreign battery supplier has been labeled as
