1. GM and CATL in discussions for a jointly-owned battery factory in North America.
2. Ford and CATL set up a unique structure for a factory in Michigan using CATL technology.
3. CATL negotiating with GM for a joint factory in North America for LFP cells, aiming for an annual capacity similar to the proposed Ford factory.
GM and CATL are in talks to potentially build a jointly-owned battery factory in North America to address concerns about Chinese dominance in the EV market. Last year, Virginia Governor Glenn Youngkin expressed anti-China sentiments regarding CATL’s presence in the state. Ford and CATL have a unique arrangement in Michigan, but some in Michigan are resistant. The GM and CATL joint venture could see the construction of a factory with production capacity similar to the Ford venture. LFP cells are gaining popularity for cheaper electric cars, and GM is interested in accessing them. There are uncertainties around how the joint venture will navigate the Inflation Reduction Act’s limitations on Chinese battery manufacturers in the US. CATL is exploring similar agreements with other car manufacturers, and the move reflects a trend towards Chinese companies expanding globally. Despite trade barriers, the need for low prices may override protectionism.CATL’s ambitions in the US and Europe may face pushback, but the trend towards global expansion by Chinese companies appears to be gaining momentum.