Tesla battery supplier Contemporary Amperex Technology Co. Ltd (CATL) decided to delay its plans to build a battery factory in North America after Nancy Pelosi’s trip to Taiwan.
Earlier this year, CATL started scouting sites across North America for its $5 billion cell plant. The Chinese battery supplier was considering sites in Canada and Mexico, capable of producing up to 80 GWh per year. In July, Teslarati reported that CATL narrowed its choices to two locations in Mexico.
However, Bloomberg sources recently stated that CATL plans to delay its battery factory plans until September or October. According to people familiar with the matter, U.S. House Speaker Nancy Pelosi’s visit to Taiwan might have created tension amid sensitive times between the United States and China.
Why is Pelosi’s visit created tension
China considers Taiwan as part of its territory. During her visit, Nancy Pelosi’s visit seemed to reaffirm Taiwan’s sovereignty as an independent nation. She also hinted at the political ties between Taiwan and the United States.
“Today, our delegation … came to Taiwan to make it unequivocally clear we will not abandon our commitment to Taiwan and we are proud of our enduring friendship,” Pelosi said while standing in the presidential office in Taipei.
The US House Speaker is the highest-ranking US politician to visit Taiwan in the last 25 years. China issued a statement saying that Pelosi’s visit would have “severe impact” on US-China relations. It considers her visit as “provacative.” China reportedly responded to Pelosi’s visit by launching exercises and targeted military operations around Taiwan.