Chevrolet Bolt EV to receive batteries from CATL, as per recent reports
In a strategic move to keep affordable electric vehicles (EVs) competitive, General Motors (GM) is temporarily importing lithium iron phosphate (LFP) batteries from Contemporary Amperex Technology Co. Limited (CATL) for its second-generation Chevrolet Bolt EV. This short-term solution comes as GM develops domestic LFP battery production capabilities with its South Korean partner, LG Energy Solution.
CATL, the world's largest power battery manufacturer, currently holds a 37.9 percent share in the global power battery market. The company is in discussions with GM regarding a License Royalty Service, which may see CATL licensing its technology to GM for production in North America. However, a jointly built CATL battery plant in North America has not yet been established.
GM's own LFP battery production is planned to ramp up through a joint venture with LG Energy Solution, converting the Spring Hill, Tennessee plant. The aim is for commercial production by late 2027. Until then, the imported CATL batteries serve as a stopgap for about two years.
This arrangement is driven by the urgency to counter high U.S. tariffs on Chinese battery imports, with the federal EV tax credit set to expire next month. The Bolt model will no longer face a $7,500 tariff disadvantage compared to other EV models, providing a level playing field. However, if the tax credit policy continues, General Motors' Bolt model will not be eligible for the credit.
The U.S. tariffs have been a result of trade tensions, with GM having to bear high tariffs due to the trade war initiated by former President Trump. The high tariffs on Chinese EV batteries imported into the U.S. stand at about 80 percent.
In the first half of the year, CATL reported a shipment volume of 190.9 GWh. The company, along with BYD, dominates the global LFP battery market. CATL also plans to build a plant with GM in North America through technology licensing, although no construction has started yet.
This news underscores the ongoing efforts by automakers to navigate tariff challenges and maintain a competitive edge in the growing EV market.
- GM, to keep its second-generation Chevrolet Bolt EV competitive, is importing lithium iron phosphate (LFP) batteries from CATL, the world's largest power battery manufacturer.
- Currently, CATL holds a 37.9 percent share in the global power battery market, and discussions are underway for a License Royalty Service, where CATL may license its technology to GM for production in North America.
- In the interim, GM is developing domestic LFP battery production capabilities with its South Korean partner, LG Energy Solution, which is set to ramp up by late 2027.
- The temporary import of CATL batteries is a strategic move to bypass high U.S. tariffs on Chinese battery imports, as GM aims to level the playing field amidst tariff challenges in the growing EV market.
- CATL, along with BYD, dominates the global LFP battery market, with CATL reporting a shipment volume of 190.9 GWh in the first half of the year.
- Plans for a CATL-GM battery plant in North America through technology licensing are in the works, although construction has not yet begun. This ongoing collaboration underscores the industry's commitment to navigating tariff challenges and maintaining a competitive edge in the expanding EV market.
