General Motors (GM) has announced plans to import power batteries from China for its second-generation Chevrolet Bolt EV, despite facing high tariffs. The decision comes as a temporary measure until GM can develop its own low-cost batteries using lithium iron phosphate (LFP) chemistry.
According to a report from the Wall Street Journal, GM will be importing batteries from CATL (SHE: 300750) for the new Bolt model, which is set to be the company’s most affordable EV. The purchase is expected to last for about two years until GM and its partner LG Energy Solution can produce batteries domestically in the US.
The new Bolt will be manufactured at GM’s plant in Kansas and is scheduled to hit dealerships in 2026. This move aligns with GM’s commitment to expanding its electric vehicle lineup, which currently includes 12 models ranging from the Chevrolet Equinox EV to the Cadillac Escalade IQ.
While LFP batteries are known for their lower cost compared to ternary lithium batteries, they typically have lower energy density. CATL and BYD dominate the global LFP battery market, with Japanese and South Korean manufacturers focusing on ternary lithium batteries.
Due to high tariffs imposed by the Trump administration on Chinese EV batteries, GM will have to navigate additional costs. However, the upcoming elimination of the $7,500 federal tax credit for EVs will make GM’s strategy more viable.
GM’s decision to import batteries from CATL has sparked discussions about a potential partnership to build an LFP battery plant in North America. This move could further solidify GM’s position in the EV market and reduce its dependence on foreign suppliers for critical components.
Overall, GM’s temporary reliance on imported batteries underscores the company’s commitment to developing sustainable and cost-effective solutions for its electric vehicles. As the automotive industry continues to shift towards electrification, GM’s strategic partnerships and investments in battery technology will play a crucial role in shaping the future of mobility.
