By Nora Eckert
(Reuters) -General Motors will import electric vehicle batteries from Chinese battery giant CATL, a source familiar with the matter told Reuters on Thursday.
The arrangement is a stopgap for GM in the next couple of years as it works to manufacture its own lower-cost batteries made with lithium iron phosphate (LFP) chemistry, the source said.
“For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing. To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model,” GM said in a statement. GM has said that its upcoming Chevrolet Bolt will use LFP technology.
The Detroit automaker added that it sells 12 EVs in the United States with domestically-produced battery cells, and in 2027 will bring LFP production to the U.S.
The Wall Street Journal earlier reported GM’s plans to import the batteries.
Global automakers are facing stiff competition from Chinese EV makers and a trade war impacting imports of crucial parts, including rare earth materials, which has pushed production costs higher. U.S. President Donald Trump has broadly used tariffs with the goal of increasing jobs and manufacturing power in the U.S. Still, automakers are continuing to import parts and full vehicles due to lower production costs or more advanced technology in other countries.
CATL didn’t immediately respond to a request for comment.
GM’s crosstown rival Ford is also making battery cells using technology from CATL to help reduce costs on EV batteries. Ford’s Michigan battery factory came under scrutiny for its ties to the Chinese company. Still, the automaker is forging ahead and said it is on “on track” to receive federal production tax credits under recently revised rules. It is expected to begin production in 2026.
(Reporting by Nora Eckert in Detroit ; Additional reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore and Mike Colias, Kirsten Donovan and Nick Zieminski)
Comments