General Motors is currently in negotiations with China’s CATL for a U.S. battery-supply deal, as reported by Car News China. While GM already works closely with CATL in the Chinese market, the potential deal being discussed would expand their partnership to North America. This would involve the establishment of a joint battery plant in either the U.S. or Mexico, along with a GM license agreement for CATL’s LFP battery technology.
GM’s interest in this partnership comes after Ford announced a similar joint-venture battery plant with CATL in Michigan last year. This move by Ford was seen as a way to drive down the costs of electric vehicles and make them more affordable for consumers. However, GM’s CEO Mary Barra has expressed concerns about the implications of such partnerships, warning that they could lead to Chinese domination of the U.S. car manufacturing industry.
The potential collaboration between GM and CATL could have a significant impact on the North American battery market, currently dominated by Japanese and Korean firms. However, the recent introduction of the Department of Energy’s “foreign entity of concern” language into EV tax credit rules raises legal concerns regarding partnerships with Chinese entities.
LFP battery technology, which has been refined and developed by Chinese companies over the past two decades, boasts impressive capabilities such as adding 250 miles of range in just 10 minutes, improved cold-weather charging, and performance. Despite its origins in the U.S., American companies initially abandoned LFP technology due to a lack of immediate returns.
In this article, we will explore the implications of GM’s potential partnership with CATL for the U.S. battery market, the existing challenges and controversies surrounding collaborations with Chinese companies, and the promising advancements in LFP battery technology.