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GM’s battery strategy entails roping in Japanese consumer electronic firm TDK Corp., which is expected to fund and operate the battery facility in the US

General Motors (GM) is in talks to source electric vehicle batteries based on CATL’s technology but assembled at a new facility in the US, according to a news report published by Reuters on Sept. 12.

The news report cited an unnamed source who was aware of the development at GM.

The news comes almost 18 months after Ford Motor Co. first announced its plan to license CATL technology to produce low-cost, lithium iron phosphate batteries at a joint battery factory in Michigan, US. However, US lawmakers had raised concerns about Ford’s plan to source batteries from CATL, the report pointed out.

Citing a Bloomberg report, it further said that GM’s battery strategy entails roping in Japanese consumer electronic firm TDK Corp., which is expected to fund and operate the battery facility where those batteries will be assembled. The facility is expected to be located in the south of the US and will create more than 1,000 jobs.

The Reuters report mentioned that while talks are still ongoing, the final deal on the local assembly of these batteries is not expected to be concluded anytime soon. This deal will help GM lower its battery costs by avoiding new US tariffs.

Citing industry officials, the report stated that if Ford were allowed to proceed with its CATL deal, other automakers would quickly follow suit so they could also cut costs.

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