Normal Motors (GM) is reportedly in talks with battery big CATL to license its cheaper LFP battery tech. The plans might embrace a brand new joint North American plant to supply the brand new batteries.
After software program glitches, freight delays, and different points brought about GM to overlook its EV gross sales goal in 2023, the corporate believes “manufacturing hell” is behind it.
CEO Mary Barra claims 2024 can be “the 12 months of execution” because the automaker seems to be to get again on monitor.
GM is ramping up manufacturing of its Ultium-based fashions after it “turned the nook” at its battery manufacturing facility in Detroit. With a number of new Chevy EVs rolling out this 12 months, together with the Blazer EV, Equinox EV, and Silverado EV, GM seems to be to construct 200,000 to 300,000 Ultium EVs this 12 months.
That might be round 20 occasions greater than the less than 14,000 models bought final 12 months. GM can be retiring its best-selling Chevy Bolt, a minimum of in its present kind.
With 62,045 Chevy Bolts bought final 12 months, the electrical automotive accounted for over 81% of GM’s EV gross sales. Barra confirmed GM will launch an Ultium-based Bolt EV subsequent 12 months.
![Chevy-Bolt-EV](https://electrek.co/wp-content/uploads/sites/3/2023/12/Chevy-Bolt-EV-lease.jpeg?quality=82&strip=all&w=1024)
It is going to provide “a good higher driving, charging, and possession expertise.” In line with Barra, it will likely be the primary Ultium EV in North America to function LFP batteries.
GM seems to be to CATL for cheaper LFP battery tech
In line with a brand new report from CarNewsChina, GM is in talks with CATL to license its LFP battery tech. The plans additionally reportedly embrace constructing a joint North American manufacturing facility to make the batteries.
Particulars are scarce, however the plant will doubtless be within the US or Mexico. Will probably be much like the settlement between CATL and rival Ford. Ford introduced a $3.5 billion funding final February to construct a brand new LFP plant (BlueOval Battery Park Michigan).
![Chevy-Blazer-EV-prices](https://electrek.co/wp-content/uploads/sites/3/2024/02/Chevy-Blazer-EV-sales.jpeg?quality=82&strip=all&w=1024)
The plant is anticipated to start producing LFP batteries in 2026 to energy Ford’s next-gen EVs. Ford reached an settlement with CATL to license its LFP battery tech. The American automaker will manufacture the cells with information from CATL.
Underneath the GM deal, CATL can be answerable for constructing the manufacturing strains, provide chains, and different gear whereas GM handles the CapEx.
![GM's-new-Bolt-EV](https://electrek.co/wp-content/uploads/sites/3/2023/06/buy-chevy-bolt-ev-1.jpeg?quality=82&strip=all&w=1024)
GM CFO Paul Jacobson stated the brand new Bolt EV will save the corporate billions through the use of LFP batteries.
Each automakers look to sidestep federal laws requiring EV batteries to be produced in North America to qualify for a tax credit score.
Electrek’s Take
If true, the information might be vital. For one, South Korean and Japanese battery makers dominate the North American market, with LG, Samsung SDI, SK, and Panasonic controlling 80% of the market.
Nevertheless, these battery makers have largely missed the chance with LFP batteries whereas China’s CATL and BYD took management of the market. LFP batteries are cheaper to supply which might give automakers a bonus going ahead.
A number of automakers, together with Ford and GM, have introduced plans to introduce extra reasonably priced EVs as demand for lower-cost electrical choices climbs.
The Late Publish claims CATL has decreased the price of its batteries to 400 yuan ($55) per kWh, in comparison with 600 yuan ($83) per kWh with NCM batteries. This might translate to vital financial savings as American automakers look to chop prices and break even with EVs.
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