GM Plans to Source CATL Batteries for Affordable Electric Car Bolt

According to Bloomberg, General Motors plans to source electric vehicle batteries from China to power its upcoming entry-level electric vehicles, while awaiting U.S.-made batteries through its partnership with South Korean battery manufacturer LG Energy Solution.

Image source: General Motors

On August 7th, General Motors announced in a statement that by 2027, the company will seek overseas suppliers to provide lithium iron phosphate (LFP) batteries for Chevrolet Bolt electric vehicles. "To remain competitive, General Motors will temporarily procure these battery packs from similar suppliers to support our most affordable electric vehicle models."

Sources revealed that Chinese battery manufacturer CATL will supply lithium iron phosphate batteries to General Motors. It is reported that production of the Chevrolet Bolt electric vehicle is scheduled to begin later this year at GM's factory in Kansas City, Kansas, USA.

The above battery procurement decision highlights the trade-offs automakers must face in launching more affordable electric vehicles while also dealing with the high new tariffs imposed by U.S. President Trump.

Contemporary Amperex Technology Co., Limited (CATL) is one of the world's largest battery manufacturers and a major supplier of lithium iron phosphate (LFP) batteries to the automotive industry. Compared to batteries containing high nickel and cobalt components, LFP battery technology is favored for its lower cost and is a popular choice for affordable electric vehicles.

China is the main global source of lithium iron phosphate (LFP) batteries. This means that General Motors will face tariffs when importing batteries from CATL, until its joint venture with LG Energy Solution starts producing domestically manufactured LFP batteries in the United States in about two years.

In order to reduce the production costs of its electric vehicles and offer more battery options in the North American market, General Motors is advancing the mass production of lithium iron phosphate (LFP) batteries. In July this year, General Motors announced plans to produce low-cost batteries at its joint venture plant with LG Energy Solution in Tennessee, USA. Reportedly, GM will begin upgrading the battery production line at the Spring Hill plant in Tennessee in the second half of this year, and commercial production is expected to start by the end of 2027.