The American automobile corporation General Motors Co. is negotiating the purchase of batteries for electric vehicles based on the technology of the Chinese company Contemporary Amperex Technology Company Limited (CATL). This is reported in a GM press release.
As part of the project, the batteries will be assembled at a new plant, which is planned to be built in the southern United States through financing by the Japanese company TDK Corp.
As part of the deal, TDK will license the technology of CATL (the world's largest manufacturer of batteries for electric vehicles) for the production of lithium iron phosphate cells, similar to the creation of partnerships between CATL, Ford Motor Co. and Tesla Inc. At the same time, GM does not plan to acquire a stake in the new company.
The technology licensing agreement will help avoid obstacles from U.S. regulators and the Biden administration, which are wary of cooperating with China on key strategic technologies, including batteries for electric vehicles.
GM's strategy in the field of electric vehicles is aimed at developing products that reduce cost, increase productivity and localize production. At the same time, technologies for the production of rechargeable batteries are a key element of the strategy.
Under the agreement, GM and other automakers can buy LFP cells at the TDK plant at a fixed price during the term of the long-term contract to protect against sharp spikes in battery prices and from having to invest billions of dollars upfront amid slowing demand for electric vehicles.
The deal will allow TDK to expand the scope of batteries for electric vehicles beyond its core consumer electronics business. In 2022, TDK and CATL received regulatory approval to establish joint ventures for the production of batteries.
Negotiations are ongoing and do not guarantee the completion of the deal against the background of the upcoming US presidential elections in November 2024.
American automakers are trying to stem the falling demand for electric vehicles and create an internal supply chain to reduce the industry's dependence on China.
CATL is a Chinese manufacturer of fuel cells, lithium-ion, lithium iron phosphate and lithium polymer batteries for electric vehicles and energy storage systems. The headquarters is located in Ninde (China).
TDK Corp. is a Japanese company that manufactures electronic components and media, including USB flash drives. The headquarters is located in Tokyo (Japan).
GM is the largest American automobile corporation. It is headquartered in Detroit, Michigan with manufacturing sites in 29 countries and sales offices in 192 countries.
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