CATL (Contemporary Amperex Technology Co Ltd) is negotiating with General Motors (GM) to license its LFP (lithium iron phosphate) Battery technology. Catl and GM are also discussing the possibility of building a joint factory in North America. 

Based on local reports in China, negotiations between CATL and General Motors are just starting. However, the pair have agreed that the annual capacity of their joint battery plant in North America would be no less than the plant CATL is currently building with Ford. In addition, CATL and GM’s battery factory would be in either the United States or Mexico.

Sources state that the agreement between CATL and GM would likely be similar to the one between Ford and the Chinese battery supplier. Last year, Ford announced plans to build a $3.5 billion battery production facility with CATL in Marshall Township of Western Michigan. It is Ford’s first LFP battery plant. 

Ford’s Michigan-based plant is expected to start operations by 2026. If General Motors’ deal with CATL is successful, their joint factory is scheduled to open around 2027.

CATL has turned to LRS (license royalty service) agreements to negotiate deals with automakers in the United States. LRS agreements circumvent US regulations under the 2022 Inflation Reduction Act that may prevent local automakers from receiving EV subsidies.

 In addition to Ford and GM, CATL is reportedly also forming an LRS agreement with long-time partner Tesla for battery machines at Giga Nevada.

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