(By Guancha Observer Network, Zhang Jiadong, edited by Gao Shen)
According to a report by The Wall Street Journal on June 17 local time, due to factors such as the increasing uncertainty of local policies in the U.S. and the slowdown in the growth of the electric vehicle market, international companies are collectively adjusting their investments in electric vehicles and battery projects in the U.S.
The article mentioned that Envision Power, a supplier of power batteries for BMW's North American and global markets, has announced the suspension of its battery factory project in South Carolina, U.S., until policy clarity is achieved. The battery project jointly developed by CATL and Ford Motor in Michigan also faces the risk of being put on hold.
The Wall Street Journal report cited a reply from an Envision Power spokesperson, stating that the company's adjustment of its rhythm in the U.S. is a rational decision based on "policy uncertainty" and "cost sensitivity."
Envision Power subsequently told the Guancha Observer Network that the energy storage production line at its Tennessee factory was first put into operation in April this year, becoming the first energy storage cell factory to be launched in the North American market, accelerating production ramp-up to support market expansion; meanwhile, it has suspended its power battery project and is prudently assessing the construction of its plant in South Carolina, waiting for clarity in U.S. market policies.
Envision Power's 46-series large cylindrical battery production line - Envision Power official website
Meanwhile, the company will flexibly allocate global capacity resources to meet the needs of customers like BMW in the North American market and globally. Recently, Envision Power's super factory in Wuxi Jiangyin has successfully mass-produced 46-series large cylindrical battery products, delivered them to BMW, and supported its global electric platform models. To cope with the growing delivery demand, Envision Power is accelerating the deployment of higher-efficiency production lines at its Cangzhou super factory, expecting batch production to begin in the second half of 2025.
The above situation reflects the dilemma faced by the Trump administration's policy bill: the U.S. hopes to significantly reduce its dependence on China, but without cooperation with China, it will be extremely difficult for the U.S. to build an influential domestic battery supply chain and specialized system.
A "phased deceleration" of Chinese companies in the U.S. has become a consensus
CATL, Envision Power, and Guoxuan High-Tech are some of the earlier Chinese enterprises to layout the electric vehicle battery industry chain in the U.S. under the backdrop of globalization.
In 2022, BMW reached a strategic partnership with Envision Power, selecting Envision Power as the new generation pure electric platform battery supplier. Envision Power simultaneously announced the construction of a new battery factory in South Carolina to provide product matching for BMW.
At that time, the Biden administration introduced regulations providing high tax credits for every battery cell and battery pack produced in the U.S.
However, since the beginning of this year, the complex and ever-changing trade policies under President Trump's administration and its comprehensive stagnation of the U.S. green transformation have cast a huge shadow over relevant industrial construction in the U.S.
Similarly, a report by The New York Times earlier this week stated that as the Trump administration attempts to restrict China's access to the U.S. market, the prosperity of U.S. battery manufacturing created during the Biden era seems to be stalling.
Ford's battery factory in Michigan - Ford Motor official website
Public information shows that the battery plant invested by Ford and CATL in Marshall, Michigan, which cost $3 billion (approximately RMB 21.55 billion), will lose its eligibility for federal subsidies.
Not only Chinese companies, but also U.S. startup battery company Group14 Technologies has slowed down the construction of a battery materials plant. The CEO of the company said that the highly targeted actions by the U.S. are catching the attention of customers. "Tariffs have once increased by more than 100%, so we might as well take a pause."
General Motors has also scaled back its electric vehicle plans and announced in December 2024 that it would sell the equity of its joint venture battery plant in Michigan to LG Energy Solution.
The New York Times pointed out that the recent imposition of high tariffs by the Trump administration on Chinese equipment and the cancellation of green energy-related tax incentives have led to higher costs and policy risks for many battery projects already underway. The report also cited data from research firm Rhodium Group, indicating that over $6 billion (approximately RMB 43.1 billion) of battery factory investments were canceled or postponed in the first quarter of 2025 alone.
Some economists believe that Trump's restrictions on the market are making his "American industrial revival" plan of manufacturing repatriation appear as an illusion. Ann E. Harrison, former dean of the Haas School of Business at the University of California, Berkeley, said that the U.S. should welcome foreign investment, including investment from China, and learn from it. "Restricting our market is a very bad idea; competition drives innovation and efficiency, and without these, companies often struggle to survive in the long term."
Envision Power's "Balanced Approach": Slowing Down in the U.S., Speeding Up in Europe
In the context of ongoing policy uncertainty in the U.S., Chinese battery companies with a global perspective and strategic planning capabilities are accelerating the optimization of their global capacity structure. In response to the adjusted pace in the North American market, many companies are shifting their focus to more certain European and Asian markets, continuing to advance their globalized layout steps.
Envision Power's globalization journey is a microcosm of this transformation trend. Originally part of Nissan's battery business division, it was acquired by an industry fund led by Envision Technology Group in 2019 and reorganized into an independent company. As one of the earliest companies to achieve large-scale mass production of power batteries in the UK and the U.S., Envision Power rapidly expanded its capacity map after its establishment, now having battery manufacturing bases in core markets such as China, Japan, the UK, the U.S., France, and Spain.
Despite the current phase adjustment in local U.S. projects, Envision Power's deployments in Asia and Europe are still accelerating: Over the past year, the company has successively achieved the start of production at its factories in Cangzhou, China, Ibaraki, Japan, and Douai, France, continuously delivering high-performance cell products to global electric vehicle and energy storage customers.
As one of the few battery companies covering Asia, Europe, and the Americas, Envision Power's supply network demonstrates a high level of strategic resilience.
Compared to the uncertainty in the U.S. market, the second-largest new energy vehicle market after China—the European market—has clearly shifted toward electrification this year. Multiple carmakers, including Renault, Volkswagen, and BMW, have seen significant growth in the sales of their pure electric vehicles (BEVs) in Europe. Data shows that from January to April 2025, the market share of BEVs in Europe rose to 15.3%, showing a significant year-on-year increase, with cumulative sales reaching 558,000 units, up 26.4% year-on-year.
In response, Chinese battery companies are continuously increasing their investments in Europe. CATL has established three bases in Germany, Hungary, and Spain; EVE Energy and Sunwoda have set up factories in Hungary; AVIC Lithium Battery has landed in Portugal; and Guoxuan High-Tech has established bases in Germany and Slovakia—Europe is becoming the "second home" for Chinese battery companies going overseas.
Envision Power's super factory in Douai, France, officially went into production, with French President Macron attending the event - Envision Power official website
Recently, Envision Power's super factory in Douai, France, officially began production, delivering batteries that helped the Renault R5 model secure the top spot in European electric vehicle sales. This factory is the ninth factory Envision Power has started globally and one of the few local cell manufacturing plants in Europe with scale effects. Notably, French President Emmanuel Macron personally attended the commissioning ceremony of the project, highlighting the factory's significant position in France's new energy strategy.
In addition, Envision Power's Phase II project in Sunderland, UK, is also progressing steadily. In May 2024, the project successfully completed its financing and is expected to commence operations in the second half of 2025, providing high-performance battery products for global customers such as Nissan.
Envision Power emphasized that in the face of constantly changing global markets, the company will continue to strengthen its capacity synergy system of "global manufacturing + nearby delivery," providing stable and high-quality localized battery products to customers, enhancing the anti-risk capability and response efficiency of the supply chain.
This article is an exclusive piece by Guancha Observer Network and cannot be reproduced without permission.
Original source: https://www.toutiao.com/article/7517954544354886195/
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