GM Explores Using CATL’s Battery Technology in US Plant
GM Considers CATL’s Battery Technology for US Production
General Motors (GM) is considering the use of battery technology from China’s Contemporary Amperex Technology Co (CATL), the world’s largest electric vehicle (EV) battery producer. Instead of manufacturing these batteries in China, GM is exploring the possibility of producing them at a new facility in the US. This move aims to mitigate geopolitical risks and enhance local production capabilities.
TDK’s US Plant Could Play a Role
According to unnamed sources, GM may secure these batteries from a factory operated by Japanese firm TDK Corp. The potential establishment of this facility in the southern US could create over 1,000 new jobs and contribute to local economies.
TDK to License CATL’s Technology
Bloomberg reports that TDK would license CATL’s technology to produce lithium iron phosphate cells under this arrangement. Unlike Ford, which has committed $3.5 billion to a battery plant in Michigan using CATL technology, GM plans to avoid equity involvement in this venture. This strategy aims to prevent potential scrutiny from US lawmakers concerned about foreign investments in critical technology sectors.
Benefits of a Supply Contract
By working through a supply contract, GM could obtain LFP cells from TDK at a fixed price over the long term. This approach would shield GM from significant upfront costs and protect it from fluctuating battery prices. It also provides stability amidst a volatile political climate, where potential changes to the Inflation Reduction Act could impact future investments.
Impact of the November Election
Many details about the plan remain unconfirmed, and its execution could be influenced by the results of the upcoming November presidential election. GM has refrained from commenting on the report but emphasized that its EV strategy focuses on lowering costs, improving performance, and localizing production.
Historical Ties Between CATL and TDK
Interestingly, CATL has significant ties to Japan’s TDK. CATL’s founder, Robin Zeng Yuqun, previously founded Amperex Technology Limited (ATL) in 1999, which was later acquired by TDK in 2005. Zeng’s early career at TDK contributed to the Japanese firm’s technological advancements in the battery sector.
