Over the next two years, US car manufacturer General Motors will source lithium iron phosphate batteries from Chinese manufacturer CATL. According to GM, this is a temporary solution until the company establishes its own production capacity for LFP cells in the US. Production is scheduled to begin in 2027 as part of a joint venture with LG Energy Solution in Tennessee.
The import is for the new Chevrolet Bolt model, which will be produced at the Fairfax plant in Kansas by the end of 2025 and be released in 2026. This model will be the group’s most affordable electric vehicle.
The import of these battery cells will be subject to an import duty of around 80 percent. These duties result from tariffs on foreign car parts introduced under the Trump administration. However, the elimination of US federal subsidies for electric vehicles of foreign origin means there is no longer a potential price disadvantage compared to competing models with US manufactured cells.
GM emphasizes that twelve of its electric vehicles are currently equipped with US-manufactured batteries. The Chevy Bolt represents a departure from GM’s previous battery strategy, which relied on uniform, expensive cell chemistries for all models. Since 2024, the battery development program is under new management that promotes a broader range of cells, including LFP technology. GM emphasizes that its collaboration with CATL is only temporary, intended to bridge the gap until US production begins.
Source:
https://www.wsj.com/business/autos/gm-bolt-china-ev-batteries-1562e2f7
