CATL & GM Tiptoe Toward A Joint Battery Factory

In response to the concerns about Chinese dominance in the electric vehicle market, GM and CATL are discussing the possibility of building a jointly-owned battery factory in North America. Despite previous roadblocks due to anti-China sentiment, these discussions represent a potential breakthrough for CATL’s North American ambitions.

Last year, Virginia Governor Glenn Youngkin expressed strong opposition to a CATL factory in his state, citing concerns about Chinese influence. Following this, Ford and CATL established a unique partnership where Ford would own a factory in Michigan utilizing CATL technology. However, resistance from some in Michigan and challenges in finding customers for the F-150 Lightning have raised uncertainties about the project’s progress.

CATL & GM Joint Venture Proposed

Recent reports suggest that CATL is in discussions with General Motors to establish a joint factory for LFP cells in North America. This partnership could mirror the proposed venture with Ford in terms of production capacity, signaling a potential shift towards greater collaboration between Chinese and American companies in the EV sector.

Cheaper LFP Battery Cells

GM’s interest in accessing cheaper LFP cells aligns with the growing trend towards more affordable electric vehicles. CATL’s success in reducing the cost of LFP batteries could have significant implications for the industry, especially as Chinese manufacturers dominate in this space.

The Takeaway

Despite trade barriers and political tensions, the pursuit of affordable and sustainable technologies like EVs is driving cooperation between global players. The rise of Chinese battery manufacturers like CATL underscores the inevitability of a more interconnected and competitive market.