According to media reports, General Motors is in negotiations with Chinese battery manufacturer CATL to obtain authorization for its lithium iron phosphate (LFP) battery technology. Under this plan, the two parties may establish a joint venture battery factory in North America to produce LFP batteries, with the new facility possibly located in the United States or Mexico.
Currently, specific details about this plan are not clear, but it will be similar to the previous cooperation agreement between Ford and CATL. In February last year, Ford announced a partnership with CATL to build a battery factory near Marshall, Michigan in the United States. The factory will utilize CATL's battery technology to power Ford's electric vehicles. Additionally, CATL will assist Ford in optimizing battery production processes, increasing capacity, and efficiency to meet Ford's demand for high-quality batteries.
Under the deal with General Motors, CATL will also be responsible for constructing battery production lines, supply chains, and other equipment, while General Motors will handle capital expenditures. Both automakers hope to bypass federal regulations in the United States that require electric vehicle batteries to be produced in North America to qualify for tax incentives.
General Motors revealed that it will launch a Bolt EV based on the Ultium platform next year, which will be the first electric vehicle in North America based on the Ultium platform and equipped with LFP batteries. General Motors Chief Financial Officer Paul Jacobson stated that using LFP batteries in the new Bolt EV will save the company billions of dollars.
After software glitches, supply chain delays, and other issues prevented General Motors from achieving its 2023 electric vehicle sales targets, the company now believes that the "production hell" phase is over, and 2024 will be the "year of execution." General Motors is increasing its production of Ultium platform-based models, with plans to introduce several new Chevrolet brand electric vehicles this year, including the Blazer EV, Equinox EV, and Silverado EV. General Motors aims to produce 200,000 to 300,000 Ultium electric vehicles this year, which is about 20 times more than the less than 14,000 units sold last year.
