GM said to import EV batteries from CATL

General Motors will import electric vehicle batteries from Chinese battery maker CATL, according to a source.

The move is intended as a temporary measure while GM develops its own cheaper lithium iron phosphate (LFP) batteries in the US.

GM said it will use these imported batteries to power its cheapest EV model, joining other US automakers who have sourced LFP batteries from foreign suppliers.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ GM’s costly EV history repeats with temporary import strategy

GM’s decision to temporarily import Chinese batteries reflects challenges from its earlier electric vehicle ventures, where high development costs created financial hurdles.

The company’s 1990s EV1 program cost approximately $340,000 per vehicle to develop, with production costs of $16,000 to $18,000 per unit, making it financially unviable despite producing around 1,100 vehicles1.

Now GM is again facing cost pressures, choosing to import CATL batteries as a “stopgap” while developing its own lower-cost lithium iron phosphate chemistry for 2027 production.

This temporary import strategy allows GM to offer competitive EVs today while avoiding the massive upfront investment that previously made its electric vehicles economically challenging.

The approach suggests GM has adapted based on its EV1 experience, where high development costs and limited production scale created an unsustainable business model that ultimately led to the program’s controversial termination.

2️⃣ Detroit automakers converge on Chinese battery dependency despite rivalry

Both GM and Ford are simultaneously using Chinese battery technology while racing to develop domestic alternatives, highlighting the industry’s current dependence on Chinese suppliers.

Ford is also making battery cells using CATL technology to reduce EV battery costs, while both companies are developing next-generation lithium manganese-rich batteries at their respective Michigan research facilities to eventually break free from Chinese suppliers2.

GM’s Global Technical Center in Warren and Ford’s Ion Park research hub are both working on LMR battery technology, with pilot production already underway at GM2.

This parallel approach demonstrates how even fierce competitors face similar strategic constraints in the current EV transition.