Report: GM to import EV batteries from China’s CATL
The arrangement is a stopgap for the Detroit automaker in the next two years as it works to manufacture its own low-cost lithium iron phosphate (LFP) batteries, the Reuters report says.
General Motors will import EV batteries from China’s battery giant CATL, according to reporting by Reuters and The Wall Street Journal.
Sources told Reuters that the arrangement is a stopgap for the Detroit automaker in the next two years as it works to manufacture its own low-cost lithium iron phosphate (LFP) batteries.
“For several years, other US automakers have depended on foreign suppliers for LFP battery sourcing and licensing,” GM said in a statement. “To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model.”
Automakers like GM are facing competition from Chinese EV makers, and the Trump administration’s tariffs have further impacted production costs.
GM shelled out USD 1.1 billion in second-quarter tariffs, and these could touch USD 5 billion for the year, according to a report by Car and Driver. The reason for this is the deep ties GM had with countries like Canada, Mexico and South Korea, under earlier free-trade deals that are no longer functional.
Though General Motors reported an overall 35% drop in second-quarter profits, its results still topped analyst estimates and the company maintained its adjusted core annual profit forecast of USD 10 billion to USD 12.5 billion. However, the US automaker cautioned that profits in the second half of 2025 would be lower than in the first.