Over the next two years, GM will source batteries from CATL as a stopgap until its own LFP battery production comes online.
According to The Wall Street Journal, General Motors (GM) will purchase batteries from Chinese manufacturer Contemporary Amperex Technology Co., Limited (CATL) for use in the upcoming second-generation Chevrolet Bolt EV, which is set to make a comeback.
Although the decision faces import tariffs as high as 80%, the move is seen as a necessary interim step to maintain product momentum until domestically produced lithium iron phosphate (LFP) batteries are ready.
The new Bolt is expected to enter production by the end of this year at GM’s Fairfax Assembly Plant in Kansas and hit the market in 2026.
As GM’s most affordable EV, the new Bolt is likely to be priced around $30,000, filling the gap left after the model’s discontinuation in 2023.
The battery supply arrangement is expected to last about two years—long enough for GM’s joint venture factory with LG Energy Solution in Tennessee to complete upgrades for low-cost battery mass production. GM says the deal paves the way for its own in-house LFP battery manufacturing.
Currently, all 12 EVs in GM’s lineup use U.S.-made batteries, ranging from the $35,000 Chevrolet Equinox EV to the $130,000 Cadillac Escalade IQ.
LFP batteries are increasingly adopted by automakers for their lower cost and higher safety, making them ideal for entry-level models. CATL, the world’s largest EV battery maker, leads the LFP segment with a global market share of 37.9% and an installation volume of 190.9 GWh in the first half of this year, according to SNE Research.
Meanwhile, GM’s Detroit rival Ford is also partnering with CATL, building an LFP battery plant in Michigan for an undisclosed small electric pickup.
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