As General Motors and Ford ramp up efforts to secure leadership in the EV segment, The Blue Oval brand is aiming to reduce battery costs through the mass-production of lithium iron phosphate (LFP) batteries at a new facility in Marshall, Michigan. Critically, the multi-billion-dollar facility leans on technology licensed from Chinese battery giant CATL, leading to controversy in the U.S. political landscape, as well as making it a target for GM.
Ford’s forthcoming LFP battery plant is expected to create roughly 1,700 new jobs and provide considerably the automaker with significantly lower EV production costs.
However, Ford’s licensing deal with CATL has drawn criticism from lawmakers and local residents, who argue that any ties with Chinese companies could pose a strategic risk, especially in light of CATL’s connection to the Chinese Communist Party and questionable supply chain practices. The use of U.S. tax incentives has added to the controversy, with Ford receiving tax credits for the new factory under the Biden-era Inflation Reduction Act.
Meanwhile, GM is pushing forward with its own EV battery plans and touting partnerships with companies based in U.S. allied countries, including South Korean LG Energy Solution. GM is also spending big in Washington, with a record $8.2 million in lobbying efforts in the first quarter of the 2025 calendar year, more than any other automotive company by a huge margin.
According to Automotive News, GM has lobbied lawmakers to place greater scrutiny on “foreign entities of concern” in a proposed budget bill, and as a result, the Ford-CATL licensing agreement may be threatened. Notably, Ford Executive Chairman Bill Ford has stated that the bill “imperils” the new Ford battery plant.
Currently, most automakers favor nickel-manganese-cobalt battery chemistry, which can be expensive. By contrast, LFP batteries are expected to provide a 20- to 30-percent cost cut, potentially serving up huge EV production savings. GM is also exploring new LFP technologies, including through its partnerships with South Korean companies like Samsung SDI and LG Energy Solution.
Comments
Should be fighting for better engine quality regarding lifters, coolant control valves, and transmissions.
Legacy Lobbying instead of going full out on new tech and becoming the undisputed leader will be the downfall to many of them.
Imagine thinking that the way to compete is by Lobbying against the competition when Administrations and ideas are constantly changing. That is such a loser mentality.
GM needs to concentrate on making the best vehicles they can make in each segment regardless of propulsion system. That is how you win.
gm already sold their soul to SAIC the Chinese company that makes electric cars and slap a chevy emblem on them.
Well My GM has 450k on it so not sure how you can make it any better quality. Lots of Trolls on here. Also the Engine Recall was only 3% of the engines so big deal. Where it was over 70% of the new Tundra V6 engines that had bearing failure. Wow how people blow everything up on the internet.
If GM is so anti-China, they should stop importing the Buick Envision immediately.