The U.S. government's Inflation Reduction Act, designed to counter China's electric vehicles, may be dismantled by American car manufacturers themselves.
According to foreign media reports, General Motors is currently negotiating with Contemporary Amperex Technology Co. Ltd. (CATL) to produce power batteries using CATL's technology at a new factory in the United States.
The factory General Motors plans to establish will be funded and operated by Japanese consumer electronics company TDK Corp. Bloomberg reports that the new facility is expected to be located in the southern U.S. and will create over 1,000 jobs.
Insiders have revealed that negotiations between General Motors and CATL are still ongoing, and many details remain unclear, with a final agreement not expected imminently. However, analysts believe that once the deal is finalized, it could enable General Motors to produce low-cost batteries and avoid new U.S. tariffs by assembling batteries domestically.
"Our electric vehicle strategy focuses on designing products that continue to lower costs, enhance performance, and promote local production. Battery technology is a key driver of this strategy. However, we won't comment on speculation," General Motors stated.
In the fiercely competitive global automotive market, manufacturers face costs amounting to tens of billions of dollars to produce new electric vehicles and batteries.
Prior to General Motors' discussions with CATL, Ford had already partnered with CATL.
Under a plan announced in February 2023, Ford has begun producing low-cost lithium iron batteries at a battery factory in Michigan, utilizing technology licensed from CATL.
Since there is no equity partnership or supply relationship between Ford and CATL, current U.S. laws pose no obstacles. Industry officials previously indicated that if Ford is allowed to proceed with its dealings with CATL, other automakers would quickly follow suit to reduce their electric vehicle costs.
