GM in talks to buy EV batteries built with Chinese tech in US, source says (updated)

TDK

12/09/2024 18:14

(Adds GM statement in paragraph 6, report details, background)
    By David Shepardson and Nora Eckert
       WASHINGTON/DETROIT, Sept 12 (Reuters) - General Motors
 GM.N  is in talks to buy electric vehicle batteries that would
use technology from China's CATL  300750.SZ  and be assembled at
a new plant in the United States, a person briefed on the matter
confirmed on Thursday.
    Crosstown rival Ford Motor  F.N  already plans to license
CATL technology to produce low-cost lithium-iron batteries at a
battery plant it is building in Michigan under a plan announced
in February 2023.
    But U.S. lawmakers including Intelligence Committee
vice-chair Marco Rubio have raised concerns about Ford's plan.
    In GM's case, the proposed plant would be funded and
operated by Japanese consumer electronic firm TDK Corp  6762.T ,
Bloomberg News reported, and is expected to be located in the
south of the United States and to create more than 1,000 jobs.
    Talks are still ongoing and many details are still unclear,
the source told Reuters, with no final deal expected
immediately. A deal could help GM produce lower-cost batteries
and by assembling them in the United States, avoid new U.S.
tariffs.
    "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. We won’t comment on speculation," GM said.
    CATL did not immediately respond to a request for comment.
    Automakers face tens of billions of dollars in capital costs
to build new EVs and batteries, as they race to put out greener
vehicles that comply with stringent emissions regulations amid
heavy competition around the globe.
    Industry officials previously said that if Ford was allowed
to proceed with its CATL deal, other automakers would quickly
follow suit so they could also cut costs.   
    Earlier, GM and Hyundai Motor  005380.KS  announced that
they have agreed to explore future collaboration across key
strategic areas including potential joint vehicle development,
supply chains and clean-energy technologies. 

 (Reporting by Nathan Gomes in Bengaluru, Nora Eckert in Detroit
and David Shepardson in Washington; Editing by Shailesh Kuber
and Alexander Smith)
 ((Nathan.Gomes@thomsonreuters.com;))