According to the "Japan Economic News" reported on January 21, the US large electric car company Tesla imported basic components from China for the manufacture of new batteries.
According to the report, the battery cathode material used by Tesla for its new electric car Cybertruck is sourced from Chinese companies. Due to the impasse in the mass production of Cybertruck, Tesla urgently turned to Chinese companies to provide parts.
Employees work on the production line of the final assembly workshop of the Tesla Gigafactory in Shanghai, China, May 12, 2023. (Photo by Ma Ning/Xinhua News Agency)
The Biden administration's goal is to exclude Chinese companies from the U.S. electric vehicle supply chain, and the Tesla case shows that this is difficult for American companies to achieve.
The report quoted Chinese media sources as saying that the relevant cathode material will be used to manufacture a new battery called "4680". Tesla aims to mass-produce the batteries at its Texas plant, but has encountered difficulties in mass production, which has become a bottleneck in expanding Cybertruck's capacity.
To break the impasse, Tesla decided to source materials from Chinese companies, the report said. Tesla has decided to purchase battery cathode materials from Chinese component suppliers in the second half of 2023, and is expected to continue to import from China by the second half of 2024.
According to the report, the Biden administration announced that from January 2024, electric vehicles produced in the United States that contain Chinese-made or assembled battery components will no longer be eligible for tax credits of up to $7,500. The Cybertruck, which was on the credit list when it was shipped, has been removed from the list since January 2024.
Other Tesla models also use parts sourced from Chinese companies. After January 2024, some Tesla Model 3s will no longer be eligible for tax credits.
Other manufacturers also rely on components from China for their electric vehicles in the United States. From January 2024, the number of models eligible for government subsidies, such as General Motors and Ford Motor, has been reduced.
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