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CATL allegedly restructures for IRA eligibility

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CATL has reportedly restructured the shareholdings of two top executives to avoid a “Foreign Entity of Concern” (FEOC) designation under the Inflation Reduction Act (IRA) in the United States. 

CATL provided an official reason for its change in shareholdings. The Chinese battery supplier stated that the restructuring would help it adapt to changes in its internal and external environments, improve its decision-making power, and promote sustainability in the company.

CruGroup hinted that CATL’s restructuring could be more about qualifying for the IRA’s tax incentives in the United States. 

Before the restructuring, CATL was in danger of receiving a FEOC designation. In December 2023, the Biden administration released a Notice of Proposed Rulemaking (NPR) explaining FEOC requirements.

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“To strengthen the security of America’s supply chains, beginning in 2024, an eligible clean vehicle may not contain any battery components that are manufactured or assembled by a FEOC, and, beginning in 2025, an eligible clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by a FEOC,” said the NPR.

The People’s Republic of China (PRC) is considered an FOEC. CATL is based in China, and one of its top executives, Robin Zeng Yuqun, is closely linked to the Chinese government. Zeng held over 25% of CATL shares before the restructuring and is a member of the Chinese People’s Political Consultative Conference (CPPCC), an advisory body to the Chinese government. 

CATL’s restructuring appears to be a way for the company to distance itself from the Chinese government and comply with IRA requirements. CATL must loosen ties with the PRC to qualify for the IRA’s tax incentive. The Chinese company has battery supply deals with one of the top automakers in the United States who want to ramp up electric vehicle production. 

Ford and CATL teamed up to build a $3.5 billion battery production facility in Michigan. The collaboration raised concerns with the United States Congress.

If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla expands US LFP battery supply with LG Energy Solution deal: report

The report was initially published by TheElec, citing industry sources.

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Credit: Tesla

LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility. 

The report was initially published by TheElec, citing industry sources.

LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.

LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.

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Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.

Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.

For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.

Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.

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Tesla begins Grok AI chatbot rollout to Australia and New Zealand fleet

The update follows earlier deployments in the United States and Europe.

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Credit: Tesla

Tesla has rolled out its Grok AI assistant to Australia and New Zealand, embedding the conversational chatbot directly into compatible vehicles via an over-the-air update. 

The system, developed by Elon Musk’s xAI, is now live on select models, giving drivers access to a voice-based assistant that goes well beyond traditional command-driven controls.

The update follows earlier deployments in the United States and Europe.

Tesla Australia confirmed Grok is available on Model S, Model 3, Model X and Model Y vehicles equipped with an AMD processor and running software version 2025.26 or later.

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“Grok is coming to Teslas in Australia and New Zealand. It can answer almost any question using real-time information & also add/edit navigation destinations to become your personal guide. Phased rollout has now begun to eligible vehicles,” Tesla Australia and New Zealand wrote in a post on its official X account.

Drivers can activate Grok using the steering wheel controls once the update is installed. Access requires either a Premium Connectivity subscription or a stable Wi-Fi connection.

Unlike conventional in-car voice assistants that rely on fixed prompts, Grok is designed to respond conversationally. It can adjust navigation mid-trip, locate nearby points of interest, explain dashboard warnings, provide driving guidance and reference the owner’s manual. 

Tesla noted that interactions with Grok are processed by xAI and remain anonymous to Tesla, adding that conversations are not linked to a specific driver or vehicle.

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Grok has attracted attention overseas for offering multiple interaction modes. In the U.S., users can select personalities such as Assistant, Language Tutor, Therapist, Storyteller and Meditation. Additional optional modes for adult users include settings labeled Unhinged, Motivation, Argumentative, Romantic and even Sexy.

Viral clips shared online have shown Grok adopting sarcastic or playful tones that differ from more neutral digital assistants, with the AI assistant typically catching drivers off-guard with its sharp personality and wit. 

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Ford is charging for a basic EV feature on the Mustang Mach-E

When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.

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Credit: Ford Motor Company

Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.

Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.

However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.

The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.

Ford is charging $495 for the frunk.

Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.

When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.

Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking

It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.

It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.

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