Exclusive from The Electric: A Leading Chinese Nickel Producer Tries Its Luck in the U.S.

The Inflation Reduction Act was meant to keep companies like Huayou Cobalt, a leading Chinese supplier of battery-grade nickel to Western carmakers including Tesla, Ford and Volkswagen, out of the U.S. battery supply chain. But the company is attempting to break into the U.S. market anyway and qualify for IRA tax credits.

In a conversation this week, an executive from Huayou’s U.S. strategy team provided one of the clearest glimpses yet into the paths that leading players from the dominant Chinese electric vehicle battery industry are considering to qualify for the IRA and supply U.S. customers. Among the worries expressed by the Huayou executive, who asked not to be identified by name, is the possibility that even if the company satisfies current regulators, a future U.S. administration might reverse the decision, rendering its U.S. investments all but worthless.