As one of the world’s largest manufacturers of batteries, CATL has been growing by leaps and bounds as automakers work to expand their respective all-electric vehicle lineups. That includes Ford, which will license lithium-iron phosphate (LFP) technology from CATL to build batteries at the under-construction BlueOval Battery Park Michigan site. However, it now seems as if Ford’s cross-town rival, General Motors, is looking to do something similar.
According to GM Authority, GM is reportedly in talks with TDK Corp, a Japanese electronics company, with an eye toward purchasing batteries that will be built in the U.S. using technology licensed from CATL. As for where the batteries will be built, exactly, that much hasn’t yet been determined, though it’s expected to be somewhere in the south at a future plant that could employ upwards of 1,000 people.
Regardless, GM wouldn’t have any sort of equity stake in this new venture, and instead, would simply be able to purchase batteries from it at a fixed cost via a long-term contract. However, there is not currently any sort of agreement in place, and this deal could reportedly change or fall through completely, depending on the outcome of the upcoming U.S. Presidential election.
Given the fact that CATL is based out of China, it is certainly facing a number of uncertainties amid the current political climate. The Biden Administration recently announced that it would be increasing tariffs on a variety of Chinese imports – including batteries and raw materials – by a significant margin, but hasn’t yet issued a final rule on that matter. Meanwhile, CATL has pushed back against claims that it uses forced labor in China, but a group of lawmakers recently asked the U.S. Defense Department to add the outfit to its list of restricted companies amid allegations that it may be working with China’s military.
No Comments yet