Following Nancy Pelosi’s visit to Taiwan, a Chinese electric vehicle battery manufacturer has decided it will be delaying confirmation of a multi-billion dollar deal to create a North American battery manufacturing facility which would supply Tesla Inc. and Ford Motor Co.,

The world’s biggest electric vehicle battery manufacturer, Contemporary Amperex Technology Co. Ltd., had been examining two sites in Mexico on the US border near Texas, as well as sites in the US for the construction of a manufacturing plant. From reports, the company had been in the advanced stages of site selection, was negotiating incentives, and had planned on announcing the selection in the next few weeks.

CATL will now wait until September or October to make its decision and announce it. The company is worried any announcement now might stoke tensions amid the conflict over Speaker Pelosi’s visit.

CATL’s headquarters are right across the Taiwan Strait, opposite Taiwan, in Fujian. This week, China is running military exercises all around Taiwan in response to Pelosi’s visit.

Bloomberg had reported a month ago that CATL was considering a cite in Cuidad Juarez, as well as Saltillo, Mexico for construction of a plant at a cost of as much as $5 billion. Other sites in the US and Mexico were still under consideration however.

CATL is still considering the deal, it is just postponing any announcement for now. CATL is also weighing the implications of the new legislative package being brokered between Senator Joe Manchin, and Senate Majority Leader Chuck Schumer, which will require EV makers source their battery minerals from a country with which the U.S. has a free trade agreement, if they want their vehicles to qualify for consumer incentives.