General Motors is in talks with Japanese electronics company TDK Corporation to produce EV batteries in the United States using technology from Contemporary Amperex Technology Co. (CATL), China’s leading battery manufacturer. This potential partnership aims to increase domestic EV battery production while addressing concerns about reliance on Chinese technology.
Under the proposed agreement, TDK would finance and operate a new battery plant in the southern United States, potentially creating more than 1,000 jobs. The plant would produce lithium iron phosphate (LFP) cells using technology licensed from CATL. General Motors plans to purchase batteries from the plant, but does not intend to take an equity stake in the venture.
This deal structure may help avoid scrutiny from U.S. lawmakers concerned about collaborating with Chinese companies on strategic technologies. Automakers could benefit from fixed-price, long-term contracts for battery cells, which would insulate them from price volatility. In addition, the agreement could serve as a hedge against potential changes to EV incentives following the upcoming U.S. presidential election.
This development comes as U.S. automakers face challenges in EV adoption and seek to build a domestic supply chain for plug-in vehicles. The proposed partnership reflects the complex landscape of global EV production as companies navigate technological advances, geopolitical tensions and evolving market demands.
Negotiations are ongoing, and the outcome may be affected by factors such as the outcome of the U.S. presidential election in November. As the automotive industry continues to transform, collaborations like this one highlight the delicate balance between technological advancement, economic interests, and national security concerns in the EV sector.
Source: BNN Bloomberg
