GM & CATL in talks regarding joint battery factory
Talks between CATL and GM on the construction of a joint factory for LFP cells in North America were reported back in April. At that time it was said that General Motors would own the factory alone and produce cells under licence from CATL.
According to the new report, however, the factory would be financed and operated by TDK. The potential deal with GM via technology licence is similar to CATL’s deals with Ford and Tesla. TDK is a Japanese company that manufactures components for consumer electronics. The information on the involvement of the new company was provided by unnamed insiders, however, and GM is said to not be interested in an equity stake in the venture.
GM was asked by Bloomberg on the subject, and responded with a rather generic “Our EV strategy is focused on designing products that continue to lower cost, improve performance and localize production. Battery technology is a key enabler of that strategy,” refusing to further comment on “speculation.” TDK and CATL representatives declined to comment outright.
The advantage of setting up a contract in this way, would be that General Motors would be protected from battery price fluctuation as it would purchase LFP cells from the TDK plant at a fixed price over the life of a long-term contract. The move would also allow GM to adapt to market demands, as well as political support more flexibly.
The Democratic Party is expected to continue to financially support the establishment of an EV value and supply chain in North America, while Republican candidate and former president Donald Trump recently called the subsidies into question.
Should the deal go through, this would entail TDK’s first foray into the field of electric vehicle batteries, expanding beyond its consumer electronic business. According to the Bloomberg report, “In 2022, TDK and CATL won regulatory approval to pursue battery joint ventures together.”
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