Report: Tesla is discussing with the White House the construction of a battery factory in America in partnership with a Chinese company

Tesla is seeking to build a battery factory in the United States, as part of a potentially contentious arrangement with a major Chinese battery maker.

Bloomberg news agency quoted informed sources as saying that Tesla officials had recently discussed with the White House regarding plans to build the factory, which includes Contemporary Amperes Technology Ltd. (CATL).

A source stated that Rohan Patel, global director of public policy at Tesla, was involved in the discussions with the White House.

The sources, who requested anonymity, added that Tesla representatives asked for clarifications regarding the US law to reduce inflation, as the American company wants to reach a formula similar to the agreement that Ford Motor Company announced last month in Michigan with Catel to build a wholly-owned factory.

The sources say that Tesla is considering building a battery factory in the US state of Texas to supply the needs for its electric car assembly plant in the state, although no final decision has been reached on the location of the factory yet.

Representatives of Tesla and Kettle or the White House might not be reached for comment on these reports.

Shares of Catel rose by 2.3% at the beginning of trading today on the Shenzhen Stock Exchange.

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