GM may buy Chinese EV batteries, but they will be made in the US

A GM electric car with Chinese EV batteries on US streets? That could soon be a possibility. GM is in talks to buy batteries from China’s CATL to be assembled at a new US plant.

According to sources close to the matter, the deal would resemble CATL’s partnership with Ford and Tesla.

The deal would include Japan’s TDK licensing the tech from CATL to assemble at a new US plant. TDK would fund and operate the new plant to build lithium iron phosphate (LFP) cells, the sources told Bloomberg.

The factory is expected to be built in the US South and could create over 1,000 jobs. Talks are still ongoing, and plans could change depending on the outcome of the US election in November.

One source claimed that GM does not plan to take a stake in the operation like Ford and Tesla’s arrangements.

As it’s set up, the arrangement could help GM side skirt possible retaliation or scrutiny from US lawmakers.

GM using Chinese EV batteries in the US?

Ford’s deal with CATL includes a wholly owned LFP plant in Michigan. The collaboration has drawn heavy criticism from Republican lawmakers.

Under GM’s potential deal, it could buy battery cells from the TDK plant at a fixed price over time. This would not only save billions in upfront costs but also protect GM from volatile battery price swings.

According to the sources, TDK, rather than GM, would bear the costs if any financial penalties are imposed.

If finalized, the deal could encourage other automakers to seek similar collaborations. Automakers are pouring resources into developing and producing next-gen EV batteries to enable more performance at a lower cost.

The news comes as Toyota and Mercedes-Benz announced plans to develop and launch solid-state EV batteries this week. Automakers are looking to secure stable, cost-effective supply chains for future models. Check back soon as more details are likely to surface.