GM is allegedly engaging in talks with Japanese electronics firm TDK Corp. to purchase batteries to power its future all-electric vehicles. The batteries would supposedly be assembled in the U.S., but leverage technology from the Chinese-based Contemporary Amperex Technology Co. (CATL). Reports indicate that the deal is still very much in flux, and could hinge on the outcome of the upcoming U.S. presidential election.
According to a recent report from Bloomberg, the EV batteries in question would be produced at a new production facility located somewhere in the U.S. South, and could create more than 1,000 new jobs. Meanwhile, GM would purchase the new batteries at a fixed price over the course of a long-term contract.
Although the batteries would use lithium iron phosphate technology licensed from CATL, the domestic production is expected to circumvent tariffs and restrictions placed on Chinese-made batteries and EV components. CATL is the largest EV battery producer in the world. The arrangement between TDK and CATL would be similar to existing partnerships between CATL and GM rival automakers like Ford and Tesla. However, GM reportedly won’t take an equity stake in the new venture, unlike The General’s Ultium Cells LLC joint venture with South Korean battery producer LG Energy.
Such a licensing agreement is likely in response to careful examination from lawmakers and the Biden administration as Washington aims to eliminate China’s role in EV production through the creation of a robust domestic EV supply chain. Last month, Republican legislators, including Senator Marc Rubio and Michigan Representative John Moolenaar, called on the Pentagon to place restrictions on CATL for the company’s alleged coordination with the Chinese military.
The purchasing strategy via TDK could also give GM added flexibility to respond to customer demand for EVs amid fluctuating market conditions and political maneuvering, all without a considerable up-front investment.
GM declined to comment on the report, merely stating, “Our EV strategy is focused on designing products that continue to lower cost, improve performance and localize production. Battery technology is a key enabler of that strategy,” per Bloomberg.
Comments
GM continues to play Chess.
TDK made the best tapes in the 80s and 90s
havent seen a tdk battery since around that timeframe too
TDK makes lots of stuff. I recently bought some 1uF ceramic caps made by them. And I used to buy the SA-90 tapes by the 10 pak back in the 70’s/80’s.
apparently they are a bit like 3M.. not as encompassing but they really branched out under the radar (to me at least). probably like IBm went industrial which is why you dont see anything on the consumer and low level commercial side from them anymore
I honestly do not understand why EV’s got politicized….1K jobs is 1K jobs no matter what.
Why would one party (Allegedly) want to allow China to completely own the future of the Automotive Sector?
Masking batteries in the USA is a National Security issue and we need to manufacture them here for our Industries and our defense military. I honestly just do not understand the short term thinking by some on EV’s and battery manufacturing overall.
Also, I hope GM moves to Cylindrical Cells…..Pouch Batteries need to go in my opinion!!!
Everyone does a big talk about national security concerns but nobody (except for a select few like us) seem to truly care. Everything is either “but, but, but, America bad in this way” or “iPhone made there already so the h*** with it.” They love their right to poke fun at big bad orange man or whatever lives matter while burning down privately owned businesses but seem to take this god given right for granted when it comes to things that truly threaten those rights like “don’t take my TikTok or Temu” or “let the Chines EVs in and let the Detroit 3 burn” (because they seem to forget, try poking fun at leaders at the place where CATL and BYD is based out of and you and your family are finished).
I am done with people like this. People seem to wholeheartedly want a dystopian future where every aspect of their lives is fully controlled, monitored, and dealt with if it is criticizing the power in place and I want no part of it. If and when this dystopian nightmare of an authoritarian future awaits us, it will not be in my conscience.
Yeah, you might want to ask China why they banned foreign EV battery makers — already built factories and employed 1K jobs — and forced all EV OEMs to switch to local Chinese battery makers since 2015 (under Papa Xi’s Make-China-Great-Again 2025), which as a result of the anticompetitive practices past 10 years, helped China corner the battery supply-chain.
Maybe I am reading this incorrectly, but here is my take:
* The higher-performing high-priced litium-colbalt-nickel batteries will be co-produced with LG for most GM EV’s.
* The lower-performing lower-priced lithium-iron-phosphate batteries will be purchased from CATL/TDK for the lower priced EVs like the new Bolt.
FOOLS. Especially the guy that says we need EV military like tanks and planes that will drop from the sky.
This is exactly what Geely did to bypass the Chinese gov’t ban against foreign batteries several years ago in China. Geely licensed LG’s battery tech and made batteries for Volvo while everyone else was forced to use locally made batteries by local Chinese companies.
Power Play: How China-Owned Volvo Avoids Beijing’s Battery Rules Car maker is allowed to use high-end foreign technology, while rivals are squeezed into buying local, Trefor Moss, May 17, 2018 ET
.. A Geely spokesman confirmed that it struck a deal late last year to license LG battery technology, and that LG Chem has helped Hengyuan set up a production line. The batteries will also be used in cars made by another Geely brand, Lynk & Co., the spokesman said.
I wonder if the latest battery announcement with their Chinese subsidiary and CATL would fall under this? It should be fast charging with a high C rate. Sounds like GM is upgrading it to 900v as well which would be great. Making it in the US would be even better,