General Motors (GM) has recently announced its decision to import batteries from China’s Contemporary Amperex Technology Co. Limited (CATL) for the upcoming Chevrolet Bolt EV model. This strategic move will support GM’s electric vehicle (EV) rollout while the company continues to advance its US battery manufacturing capabilities in partnership with LG Energy Solution.
According to a report by The Wall Street Journal, GM plans to source lithium iron phosphate (LFP) batteries from CATL for a two-year period. The production of the new Bolt model is set to begin at the Fairfax Assembly Plant in Kansas later this year, with the vehicle expected to hit dealerships in 2026.
The decision to import batteries from China reflects the challenges faced by automakers in balancing cost considerations with the implications of existing US tariffs. The tariffs, implemented during President Donald Trump’s administration, have added a financial burden to imported goods, including EV components, as reported by Bloomberg.
GM stated, “To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model.” CATL’s technology offers an affordable alternative to batteries containing higher amounts of nickel and cobalt.
In an effort to strengthen its supply chain, GM has entered into a multi-year contract with Noveon Magnetics, a US-based provider, for the supply of rare earth magnets essential for various vehicle applications, including GM’s trucks and SUVs. The partnership with Noveon has already commenced, with the initial delivery of magnets taking place last month.
Previously, GM faced a significant decline in earnings, attributing a loss of $1.1 billion in the second quarter to the adverse effects of trade tariffs. Despite an increase in the number of vehicles sold worldwide, from 1.43 million in the second quarter of 2024 to 1.54 million in the same period of 2025, net earnings fell to $1.9 billion, a decrease of over 33% compared to the previous year.
The decision to import batteries from CATL and strengthen partnerships with US-based suppliers like Noveon Magnetics highlights GM’s commitment to navigating the challenges of the automotive industry while driving innovation in the electric vehicle sector. As GM continues to expand its EV offerings and enhance its manufacturing capabilities, the company remains focused on delivering high-quality, sustainable vehicles to meet the evolving demands of the market.
