Tesla Inc. is seeking to construct a battery plant within the U.S., in line with folks accustomed to the matter, in what would possible be a controversial association with China’s dominant electric-vehicle battery producer.

The EV maker mentioned plans involving Modern Amperex Expertise Co. Ltd. with the White Home in current days, mentioned the folks, who requested to not be recognized revealing non-public conversations. Tesla representatives sought readability on the Inflation Discount Act guidelines that the Biden administration is finalizing this week, in line with among the folks. Rohan Patel, the corporate’s senior international director of public coverage, was amongst these concerned with the discussions, one of many folks mentioned.

Tesla needs to pursue a deal just like one which Ford Motor Co. introduced final month in Michigan with the battery maker, referred to as CATL, to assemble a plant wholly owned by the US automaker, in line with the folks.

Representatives of Tesla, CATL and the White Home did not instantly reply to requests for remark. Patel additionally did not reply.

Tesla is in enlargement mode, deploying its $22 billion in money to crank up manufacturing volumes and decrease prices because it faces elevated competitors. CATL, which makes lithium iron phosphate batteries, a chemistry that’s cheaper than the nickel-based batteries used within the West, is essential to that plan.