From the Wall Street Journal via MSN, August 7:
General Motors plans to import batteries from China, despite steep tariffs imposed by President Trump, to power its second-generation Chevrolet Bolt electric vehicle, a supply-chain Band-Aid for a company that touts extensive investments in U.S. battery manufacturing.
GM will buy the batteries from China’s Contemporary Amperex Technology, one of the world’s largest battery makers, for about two years until the Detroit automaker and its Korean partner LG Energy Solution can stand up their own manufacturing of the lower-cost batteries in the U.S., according to people familiar with the plan.
The new Bolt is set to start rolling off the line at the company’s Fairfax Assembly Plant in Kansas late this year, reaching dealerships in 2026 as GM’s most affordable electric vehicle.
GM said the arrangement is a stopgap as it works to manufacture its own lower-cost batteries made with lithium iron phosphate or “LFP” chemistry.
“For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing,” a spokesman said in a statement. “To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model.”
The largest U.S. automaker added that all 12 EVs it sells today—from the $35,000 Chevrolet Equinox EV to the $340,000 Cadillac Celestiq—have U.S.-made batteries.
Contemporary Amperex, also known as CATL, declined to comment.
Because of President Trump’s trade war, the automaker will have to swallow punishing tariffs. Chinese EV batteries currently carry total duties of about 80%, including Trump’s levies on foreign automotive parts, said Nunzio De Filippis, co-CEO of CargoTrans, a logistics management firm....
....MUCH MORE
CATL may be lifting the kimono (I know, wrong country) on a bit of an oversupply issue if they are able to sell the battery at a price where GM can offer the Bolt at a price that is cost competitive in spite of the tariffs.
Here's the last year of price action for the stock (300750 Shenzhen), after the 9% decline since July 29 we're right back where we were in November 2024:
The downturn occured as the SCMP was reporting this on July 30:
CATL posts 34% profit growth, defying weak global EV demand
Contemporary Amperex Technology (CATL), the world’s largest electric vehicle (EV) battery maker, saw net profit surge in the second quarter on the back of a successful share sale in Hong Kong to fund ...