- GM might use TDK’s new US plant to produce batteries with CATL technology.
- TDK’s facility could create over 1,000 jobs and help GM avoid equity investment.
- The outcome of November’s election may impact GM’s battery plan.
GM is exploring the possibility of sourcing electric vehicle batteries utilizing technology from China’s Contemporary Amperex Technology Co, more commonly known as CATL, the world’s largest EV battery producer. However, rather than manufacturing these batteries in China, they could be produced at a new site in the US, potentially mitigating geopolitical risks and enhancing local production capabilities.
According to unnamed sources, GM might secure these batteries from a factory operated by Japanese firm TDK Corp. This facility could be established in the southern US, promising the creation of over 1,000 new jobs and bolstering local economies.
Read: GM And Hyundai Want To Make Cars Together
Bloomberg reports that TDK would license CATL’s technology to produce lithium iron phosphate cells under this arrangement. While Ford has already committed $3.5 billion to a battery plant in Michigan using CATL technology, GM plans to bypass equity involvement in this venture. This strategy could help GM avoid potential scrutiny from US lawmakers concerned about foreign investments in critical technology sectors.
By working through a supply contract, GM could obtain LFP cells from TDK at a fixed price over the duration of a long-term agreement. This approach would not only shield GM from significant upfront costs but also protect it from fluctuating battery prices. Additionally, it provides a measure of stability amidst a volatile political climate, where potential changes to the Inflation Reduction Act could impact future investments.
Many details about the plan remain unconfirmed and it could shift depending on the results of the upcoming November presidential election. GM has declined to comment on the report but did say its “EV strategy is focused on designing products that continue to lower cost, improve performance, and localize production. Battery technology is a key enabler of that strategy.”
Interestingly, CATL, which was founded by Robin Zeng Yuqun in 2011, has significant ties to Japan’s TDK. Zeng previously founded Amperex Technology Limited (ATL) in 1999, which was acquired by TDK in 2005. Zeng subsequently worked as a manager at TDK, linking his early career directly to the Japanese firm’s technological advancements in the battery sector.
