GM is planning to import EV batteries from Chinese battery producer CATL, despite the tariff of 30% on imports to the US from China. The deal will act as a stopgap until the OEM can manufacture its own lithium iron phosphate (LFP) batteries in the US with LG Energy Solution, according to Reuters. In a statement provided to Automotive Logistics, a GM spokesman said: "For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing. To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model. We’re proud that we sell 12 EVs in the U.S. using domestically-produced battery cells, and in 2027 we will bring LFP production to the U.S., further cementing our unique and resilient US-based supply chain." Last year, Kurt Kelty, vice‑president of battery cell and pack at GM said the carmaker is planning a new battery cell development facility at its Global Tech Center in Warren, Michigan, which he said was set to open in 2027. At the time, he said the conditions are now in place for North America to seize EV battery leadership from China and commercialise domestic battery technologies. "It’s a simple and pragmatic reality that development of any new technology benefits greatly from proximity to customers," said Kelty. "Today, the US has the customer base."

However, since Kelty’s announcement, the EV market in North America and demand for the vehicles has shifted. US president Donald Trump has been set against EVs, pausing funding from the Inflation Reduction Act (IRA) which was introduced in 2022 to boost incentives for purchasing and maintaining EVs. Trump also said he would "revoke the EV mandate," seemingly referring to the Environmental Protection Agency’s rule that requires OEMs to cut greenhouse gas emissions in half for light and medium vehicles by 2027, and the target for 50% of new vehicles sold in the US to be electric by 2030. GM’s approach to domestic EV supply chains has also fluctuated over the last year. The OEM has been partnering with battery specialists like LG Chem and Ultium Cells to take more control of its EV battery supply chain. However, in December the carmaker announced it was selling its stake in the Ultium Cells battery cell plant in Lansing, Michigan to its joint venture partner LG Energy Solution.

GM's strategic shift: Importing EV batteries from CATL amid US tariffs

General Motors (GM) plans to import lithium‑iron‑phosphate (LFP) batteries from Chinese producer CATL to supply its most affordable electric vehicles, despite a 30% tariff on Chinese imports to the United States. The move is a temporary stopgap until GM can manufacture its own LFP batteries in the U.S. with LG Energy Solution. GM will bring domestic LFP production to the U.S. in 2027 and has already sold 12 EVs using domestically produced battery cells. The decision comes amid shifting U.S. policy under President Trump, who has paused Inflation Reduction Act funding for EVs and threatened to revoke the EPA’s EV mandate.