Aug 7 (Reuters) - General Motors ( GM ) will import
electric vehicle batteries from Chinese battery giant CATL
, a source familiar with the matter told Reuters on
Thursday.
The arrangement is a stopgap for GM in the next couple of
years as it works to manufacture its own lower-cost batteries
made with lithium iron phosphate (LFP) chemistry, the source
said.
"For several years, other U.S. automakers have depended on
foreign suppliers for LFP battery sourcing and licensing. To
stay competitive, GM will temporarily source these packs from
similar suppliers to power our most affordable EV model," GM
said in a statement.
The Detroit automaker added that it sells 12 EVs in the
United States with domestically-produced battery cells, and in
2027 will bring LFP production to the U.S.
The Wall Street Journal earlier reported GM's plans to
import the batteries.
Global automakers are facing stiff competition from Chinese
EV makers and a trade war impacting imports of crucial parts,
including rare earth materials, which has pushed production
costs higher.
CATL didn't immediately respond to a request for comment.
GM's crosstown rival Ford is also making battery cells
using tech from CATL to help reduce costs on EV batteries.