General Motors (GM) is in talks to buy electric vehicle (EV) batteries based on technology developed by China’s Contemporary Amperex Technology (CATL), according to a Reuters report citing a GM spokesperson.
The batteries would be produced in the southern US at a US funded factory operated by Japanese electronics manufacturer TDK, using technology licensed from CATL which is the world’s largest battery manufacturer.
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GM is understood to be looking to source low cost, next generation all solid state (ASS) or lithium iron phosphate (LFP) batteries to help make its battery electric vehicles (BEVs) more competitive in the US.
CATL has a head start in bringing to market next generation battery technology compared with most of its global rivals.
The unnamed GM spokesperson said: “As the talks (with CATL) are ongoing and many detailed issues have yet to be resolved, no agreement can be expected to come out soon.”
If a deal is reached, GM would have access to cheaper Chinese BEV batteries without incurring import duty, helping it compete more effectively in its domestic market.
Last year, Ford said it was planning to license CATL technology to produce low cost lithium ion batteries at a plant under construction in Michigan which raised significant concerns within the US government. The region’s automotive industry is following these developments closely.
GM already has an EV battery partnership in the US with South Korea’s LG Energy Solution, called Ultium Cell LLC, and last month announced it had finalised a battery cell agreement with Samsung SDI, also from South Korea.
