Executives from Volkswagen (VOWG_p.DE), BMW, and Hyundai (005380.KS) have urged U.S. legislators to give automakers operating in the United States more time to meet the required battery sourcing targets to qualify for tax incentives.
CATL sees North America as a crucial market, the two people with knowledge of its planning said.
But the new U.S. rules on sourcing battery materials had become a "banana peel" that have slowed the company's investment plans, one said.
China, led by CATL, dominates the EV battery supply chain, producing about 70% of battery cells made globally.
At the event to announce the investment, Zipse was critical of the new sourcing requirements, saying the "United States should have a regulation that is not entirely unrealistic."