GM in talks to acquire US-built EV batteries using Chinese technology

Auto major General Motors is holding talks to buy EV batteries using CATL technology to assemble batteries at a new plant in the United States, reported a source close to the deal on Thursday. The proposed deal is that GM’s rival, Ford Motor, plans to use CATL’s technology to assemble low-cost lithium-iron batteries at a plant under construction in Michigan, as informed in February 2023. However, the plans of ford have been criticized by the US lawmakers with the Intelligence Committee Vice-Chair, the Marco Rubio among them who has severe concerns of the use of Chinese technology.

However, GM project would involve a new plant being funded and managed by Japanese electronics firm, TDK corp as reported by Bloomberg News. It is anticipated that this facility will be based in the southern states of the U.S and may create well over a thousand positions. While the talks are continuous and much of the details remain vague, no final agreement is expected in the near future.

GM’s potential deal could let the company make batteries cheaper and avoid new US tariffs by assembling them at home. Speakers of the automaker pointed performance, cost and localisation strategies but did not wish to comment on the ongoing bargaining sessions. So far, CATL has not provided any comments on the discussions as requested.

Since EVs and batteries are an expensive investment, automakers are under tremendous pressure to meet emissions targets and remain profitable on the international stage. If Ford’s deal with CATL does happen, other automakers may have no choice but to follow suit to control expenses shortly.

Similarly, both GM and Hyundai Motor are keen to establish potential synergistic relationships in key fields of business such as vehicle engineering and production, and clean-device technologies in the future.