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GM will import batteries from China for new Bolt as it works to get US plant going

Summer Ballentine, The Detroit News on

Published in Automotive News

General Motors Co. will import batteries from China for the upcoming electric Chevrolet Bolt as it works to get a U.S. plant up and running.

GM will buy lithium-iron-phosphate batteries from China's Contemporary Amperex Technology Co. Ltd., the Wall Street Journal first reported Thursday and a source close to the matter confirmed to The Detroit News on Friday.

Ford Motor Co. also has an agreement to license technology from the Chinese battery giant for a multibillion-dollar battery plant in south-central Michigan, a deal that has faced some political backlash.

"For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing," according to a GM statement. "To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model. We’re proud that we sell 12 EVs in the U.S. using domestically-produced battery cells, and in 2027 we will bring LFP production to the U.S, further cementing our unique and resilient US-based supply chain."

The deal highlights the difficulties U.S. manufacturers face to onshore production in response to President Donald Trump's tariffs.

GM last month unveiled a plan to produce lithium-iron-phosphate batteries in Tennessee in partnership with LG Energy Solution. But production of those EV batteries, which are cheaper to make because of higher iron content, is not expected to begin until 2027.

 

In the meantime, GM is willing to pay import taxes in exchange for more affordable batteries to go in the redesigned Bolt, a cult favorite discontinued in 2023. The new Bolt is scheduled to begin production late this year at GM's Fairfax Assembly plant in Kansas.

GM introduced its Bolt to the market in late 2016 and began selling the larger Bolt EUV in 2021. In 2021, the automaker had to recall all Bolts for battery fire risk as the result of manufacturing defects.

Analysts say a key to EV adoption in the United States is affordability, as most EVs are priced at several thousand dollars more than gas-powered counterparts.

Use of cheaper batteries, such as those using lithium-iron-phosphate technology, is seen as a path to lower costs and mainstream adoption.


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