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CATL Considers U.S. Plant if Trade Policy Shifts Under Trump Administration

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China’s CATL, the world’s leading electric vehicle battery manufacturer, has expressed interest in establishing a plant in the United States if the upcoming Trump administration eases restrictions on Chinese investments in the EV sector. Robin Zeng, CATL’s founder and chairman, disclosed that although CATL had previously explored U.S. investments, it was blocked by trade barriers and national security concerns under former trade policies, including tariffs that made Chinese EV and battery products prohibitively expensive in the American market.

These restrictions have targeted Chinese technology, with both the Trump and Biden administrations enforcing protective trade measures. Chinese battery technology, for instance, does not qualify for the consumer EV subsidies introduced under the Biden administration, and Chinese-made electric vehicles face a 100% tariff, effectively barring them from U.S. entry. Recently, a Republican-backed bill also proposed limiting EV incentives for vehicles containing Chinese-made batteries, a measure opposed by the current White House.

Despite these barriers, Trump has suggested openness to foreign automakers setting up production in the U.S. on the condition that they manufacture locally and employ American workers. This conditional openness has kept Zeng interested in revisiting U.S. opportunities, especially as CATL continues to license its technology to American automakers such as Ford and Tesla. Ford plans to open a Michigan facility utilizing CATL’s lithium-phosphate battery technology, while Tesla has a similar licensing agreement for battery production expected to launch in Nevada in 2025.

Zeng, who frequently discusses industry trends with Tesla’s Elon Musk, praised Musk’s vision for AI-driven autonomous vehicles. However, he voiced skepticism about Musk’s preference for cylindrical battery cells, specifically Tesla’s 4680 model, cautioning Musk that it would face significant technical challenges. Zeng also critiqued Musk’s tendency to set ambitious timelines, arguing that such accelerated deadlines may set unrealistic expectations among stakeholders. Musk, who has consistently aimed to push Tesla’s production limits, recently announced plans for fully autonomous Tesla models by 2024 and a “Cybercab” robotaxi by 2026, though these projections were met with investor skepticism.

While Zeng acknowledged Musk’s ambitious vision and alignment in pushing the EV industry’s boundaries, he cautioned that overly optimistic timelines could undermine progress. Nevertheless, Zeng emphasized that CATL is committed to expansion and innovation, awaiting a more favorable regulatory environment in the U.S. to potentially broaden its presence beyond licensing partnerships.

 

Elon Musk and GOP Leaders Push for Federal Reserve Overhaul as Trump Prepares for New Term

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As President-elect Donald Trump readies for a return to the White House, speculation mounts about possible changes to the Federal Reserve’s role and independence. Elon Musk, a prominent Trump supporter, recently backed a call by Republican Senator Mike Lee to abolish the Fed. Lee argued that the Federal Reserve deviates from the Constitution’s original intent, advocating instead for executive control over monetary policy.

Though Trump has yet to make a definitive stance on dissolving the Fed, he has campaigned for revising the institution’s policies, particularly aiming to lower interest rates. On the campaign trail, Trump proposed that Fed officials consult with him on interest rates—a shift that could potentially undermine the Fed’s long-standing independence, which allows it to make decisions focused on long-term economic stability rather than political demands. Trump has previously criticized Fed Chair Jerome Powell, whom he blamed for maintaining high rates during his first term.

The notion of eliminating the Federal Reserve isn’t new. Republican legislators like Senator Lee and Representative Thomas Massie introduced bills this year aimed at dismantling the Fed and transferring its duties to the Treasury Department. However, Congress has historically guaranteed the Fed’s ability to operate as an independent body, empowered to make policy decisions without political interference, a standard reinforced by recent Supreme Court decisions on similar independent agencies. Under the Federal Reserve Act, the Fed Chair can only be removed for “cause,” a legal standard meant to protect against arbitrary dismissal.

Trump’s upcoming term may be the first true test of this independence. Republicans currently control the Senate, and Trump’s influence on the Supreme Court—having appointed three of the six conservative justices—could lend credibility to any attempt to challenge the Fed’s autonomy. However, the high court has recently upheld the independence of other regulatory agencies, suggesting it may resist radical changes to the Federal Reserve.

 

Elon Musk Endorses Plan for Presidential Influence Over Federal Reserve Following Trump’s Election Win

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Elon Musk, CEO of Tesla and SpaceX, has publicly supported the notion of allowing presidents to influence the Federal Reserve’s policy decisions, following Donald Trump’s recent presidential election victory. Musk’s endorsement came on Friday in response to a social media post by Republican Senator Mike Lee of Utah, who proposed the Fed should be under the president’s control and used the hashtag “#EndtheFed.” Musk replied to the post with a “100” emoji, signaling his agreement.

The exchange highlights a renewed interest in challenging the Federal Reserve’s traditional independence. This move aligns with Trump’s past stance on the issue; during his first presidential term, he openly criticized Fed Chair Jerome Powell and suggested that the president should have a voice in the central bank’s monetary policies. Trump, who frequently expressed frustration with Fed decisions, argued he had “better instincts” regarding economic policy than some Federal Reserve officials, given his business success.

Federal Reserve independence is a principle established to enable monetary policy decisions, like setting interest rates, based on economic projections rather than political motivations. This separation is intended to promote economic stability, shielding the central bank from political cycles. Nevertheless, Trump has repeatedly voiced his preference for executive influence over the Fed, particularly during his 2024 campaign, asserting in August that presidential input would benefit the economy.

On Thursday, in the wake of Trump’s election victory, Powell emphasized his commitment to maintaining Fed independence, stating he would not step down if asked by the president. Powell’s stance suggests that the Trump administration’s potential pressure on the Fed could reignite tensions over the independence of U.S. monetary policy.