One of the largest suppliers of EV batteries is in talks with yet another Detroit Big Three automaker, in spite of the fact that its involvement with another automaker made waves amongst protectionist members of Congress.
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Per a report by the Beijing Late Post, EV battery leader Contemporary Amperex Technology Company (CATL) is in talks with General Motors (GM) about establishing a North American battery production facility, as well as licensing the Chinese firm's lithium-iron phosphate (LFP) battery technology.
The potential deal is said to mirror CATL's agreement with Ford (F) and its controversial Blue Oval Battery Park in Michigan. When finished, CATL will train Ford staff to produce EV batteries using their LFP technology and retain IRA tax credit requirements for EVs like the Mustang Mach-e and F-150 Lightning.
Unnamed sources cited by the Beijing-based outlet have said that the theoretical plant would be built in either the U.S. or Mexico, and would have a similar production capacity as Ford's Blue Oval Battery Park.
General Motors is planning to use the cheaper and more advanced LFP battery technology in its future EVs. GM CEO Mary Barra mentioned during the automaker's third-quarter 2023 earnings call that the next generation Chevrolet Bolt compact will incorporate it into its design, noting that the use of LFP batteries will save the automaker "billions in capital and engineering expenses."
"[The Chevrolet Bolt] will be our first deployment in North America of LFP technology in the Ultium platform," Barra said during the earnings call in October 2023.
Though the cheaper and advanced LFP technology is something that both Ford and GM have solid plans for, the elephant in the room still remains to be the use of Chinese technology. CATL holds a large market share in the EV battery space and is a major supplier to large automakers like BMW, Mercedes-Benz and even Tesla, but the air of Sinophobic distrust around them is still thick.
According to a September 2023 report by the Wall Street Journal, GM CEO Mary Barra warned a small group of Congressional members that Ford's partnership with CATL on the Blue Oval Battery Park would help the Chinese solidify their EV dominance.
In a January 29 letter, Representatives Mike Gallagher (R-WI) and Cathy McMorris Rodgers (R-WA) — the respective chairs of the House select committee on China and the Energy and Commerce Committee — urged the Commerce Department to investigate and impose export restrictions on Chinese firms including CATL, alleging that the battery maker was involved in the design, construction and information technology (IT) workings of Ford's Blue Oval Battery Park.
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The lawmakers accused the Chinese firm of not only having direct ties to the Chinese Communist Party (CCP), but also the Chinese military, alleged human rights abuses in the Xinjiang region of China and the government of North Korea.
In a statement to Reuters, Ford said that it follows "all government regulations across our business," adding, "Ford suppliers are required to meet our higher standards, including for protecting human rights, and obligated to extend those requirements to suppliers with whom they might work."
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