Is a General Motors electric automobile equipped with Chinese-language EV batteries operating safely on U.S. roads? This could escalate into a full-blown crisis. General Motors is engaged in discussions with Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd (CATL) regarding the potential procurement of batteries for assembly at its newly established US-based manufacturing facility.
According to sources closely tied to the situation, the agreement is likely to mirror CATL’s collaborations with Ford and Tesla.
Under the proposed agreement, TDK will acquire the technology license from CALT to manufacture batteries at a newly established US-based production facility. According to insiders, TDK will fund and operate a newly constructed facility dedicated to producing lithium iron phosphate (LFP) cells.
The manufacturing facility is expected to be built in the US South, generating more than 1,000 new job opportunities. Ongoing discussions persist, with plans subject to revision pending the outcome of the US presidential election in November.
While one supplier suggested General Motors (GM) has no intention of taking an equity stake in the venture, similar to Ford’s and Tesla’s approaches.
Because of its arrangement, the association may be forced to help General Motors avoid attainable retaliation or scrutiny from US lawmakers.
The Chevy Blazer EV (left), Chevy Equinox EV (center), and Chevy Silverado EV (right) are featured in this image from General Motors.
Are General Motors exploring the possibility of using Chinese-made electric vehicle (EV) battery components in their vehicles assembled in the United States?
Ford’s partnership with CATL includes a wholly owned lithium-iron phosphate (LFP) battery cell manufacturing plant in Michigan. The joint effort has sparked intense backlash from Republican legislators.
Under the proposed agreement with GM, TDK’s manufacturing facility could supply battery cells to the automaker at a fixed price over the duration of the contract. This move enables GM to avoid shouldering the full cost burden while also shielding itself from potentially volatile battery price fluctuations.
According to sources, Toyota Daihatsu Kogyo (TDK) rather than General Motors (GM) would likely absorb any financial penalties that may be incurred.
If the deal is finalized, it could potentially inspire other auto manufacturers to explore similar partnerships. Automakers are investing heavily in the development and production of next-generation electric vehicle (EV) batteries, aiming to achieve greater efficiency while reducing costs.
Toyota and Mercedes-Benz announced joint efforts to develop and commercialize innovative solid-state electric vehicle (EV) batteries earlier this week. Automakers seek to establish stable, affordable supply chains for future designs. A rapid re-examination of the situation seems warranted to prevent crucial details from being overlooked.
