GM to import EV batteries from CATL despite tariffs

The deal will act as a stopgap until the OEM can manufacture its own lithium iron phosphate (LFP) batteries in the US with LG Energy Solution, according to Reuters.

Last year, Kurt Kelty, vice-president of battery cell and pack at GM said the carmaker is planning a new battery cell development facility at its Global Tech Center in Warren, Michigan, which he said was set to open in 2027.

At the time, he said the conditions are now in place for North America to seize EV battery leadership from China and commercialise domestic battery technologies. “It’s a simple and pragmatic reality that development of any new technology benefits greatly from proximity to customers,” said Kelty. “Today, the US has the customer base.”

However, since Kelty’s announcement, the EV market in North America and demand for the vehicles has shifted. US president Donald Trump has been set against EVs, pausing funding from the Inflation Reduction Act (IRA) which was introduced in 2022 to boost incentives for purchasing and maintaining EVs. Trump also said he would “revoke the EV mandate,” seemingly referring to the Environmental Protection Agency’s rule that requires OEMs to cut greenhouse gas emissions in half for light and medium vehicles by 2027, and the target for 50% of new vehicles sold in the US to be electric by 2030.

GM’s approach to domestic EV supply chains has also fluctuated over the last year. The OEM has been partnering with battery specialists like LG Chem and Ultium Cells to take more control of its EV battery supply chain. However, in December the carmaker announced it was selling its stake in the Ultium Cells battery cell plant in Lansing, Michigan to its joint venture partner LG Energy Solution.

GM and CATL have been contacted for comment.