GM to Import Batteries from China’s CATL for New Chevrolet Volt

General Motors has decided to import batteries from China’s Hyundai Amperex Technology (CATL) for its second-generation Chevrolet Volt electric vehicles, despite the significant tariffs imposed by the Trump administration on Chinese imports.

GM’s choice to source these batteries is seen as a temporary solution while it works with South Korean partner LG Energy Solutions to manufacture less expensive lithium iron phosphate (LFP) batteries domestically. Production for the new Volt is set to begin at GM’s Fairfax assembly plant in Kansas later this year, with plans to have the vehicle available to dealers by 2026, making it the company’s most budget-friendly electric vehicle.

A representative from GM explained that this arrangement is a necessary step to remain competitive, emphasizing that the company is also focused on producing its own LFP batteries in the US. It was mentioned that all current electric vehicles sold by GM utilize batteries made in the US.

The tariffs on Chinese EV batteries, a consequence of the trade tensions initiated by President Trump, significantly affect GM’s profit margins for the new Volt. However, the recent removal of the $7,500 federal tax credit for electric vehicles adds a layer of feasibility to GM’s plans, as the Volt will not be at a major disadvantage when compared to other electric vehicles available.

Industry expert Sam Abuelsamid from Telemetry noted that LFP batteries are approximately 35% cheaper than those that use nickel and cobalt, which might enable GM’s new Volt with imported batteries to be either more profitable or at least competitive in terms of pricing.

The decision to rely on batteries from China underscores the ongoing hurdles that US automakers and battery manufacturers face. Companies like CATL and BYD have made significant advances in LFP battery technology, which originated in the US but is now primarily produced in China.

Similarly, other US automakers, like Ford, are also tapping into Chinese innovation in LFP batteries. Ford is currently utilizing CATL’s technology and manufacturing methods to create affordable EV batteries at its new factory in Michigan.

Initially, GM’s electric vehicle strategy concentrated on a modular system, where all models would share a battery made from high-cost materials. Now, under the direction of Tesla veteran Kurt Keltie, who joined GM in 2024 and is overseeing battery development, GM is broadening its scope to include various battery types, particularly LFP.

The expected retail price for the new Volt is around $30,000, making it GM’s most economical electric vehicle. GM board member John McNeill had previously indicated that the car could sell for $20,000 after the federal tax credit, but it seems those credits may no longer be available by the time the new model launches.