Japanese company TDK could license CATL technology from China to produce lithium iron phosphate (LFP) battery cells for EVs for General Motors.
Negotiations are underway at General Motors regarding batteries it will use for its EVs. The Detroit-based automaker is exploring a major strategic opportunity: the use of electric vehicle batteries based on technology from China's Contemporary Amperex Technology Co , the world's largest producer of EV batteries.
But instead of manufacturing those batteries in China, General Motors plans to have them produced in the U.S., thereby reducing geopolitical risks while strengthening local production capacity.According to unnamed sources, GM could obtain these batteries from a plant operated by Japanese firm TDK Corp. That plant would be located in the southern U.S. and would create potentially over 1,000 new jobs, boosting local economies.
According to Bloomberg, TDK could license CATL technology to produce phosphate-iron-lithium battery cells. While Ford has invested $3.5 billion in a battery plant in Michigan using the same technology, GM is planning a different approach, avoiding any direct equity participation. That strategy would enable GM to avoid running afoul of U.S. lawmakers concerned about foreign investment in critical technology sectors.By entering into a supply contract, GM could secure access to LFP cells at a fixed price over the duration of a long-term agreement. This approach would protect the company against high up-front costs and volatile battery prices.
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