Are General Motors and CATL Discussing Cooperation on Lithium Iron Phosphate Battery Technology?

According to Bloomberg, General Motors is negotiating to purchase batteries from the plant set up by Japan's TDK in the United States, and TDK has been authorized by CATL to use its technology to produce lithium iron phosphate batteries. The cooperation model is similar to the cooperation model previously discussed by CATL with Ford Motor and Tesla.

TDK plans to build an automotive battery assembly plant in the southern United States, which will be invested and operated by Japanese consumer electronics company TDK Corp. and is expected to create more than 1,000 jobs.

Through this cooperation, General Motors hopes to use CATL's advanced lithium iron phosphate battery technology to produce electric vehicle batteries to avoid high tariffs. In addition, the two parties may also adopt a technology licensing model (LRS), that is, CATL will license its technology to General Motors for use and jointly build a battery factory in the United States.

Although the details of the negotiations are not clear at present. But analysts believe that once an agreement is reached, it will help General Motors gain a significant advantage in cost control. This move also shows General Motors' active layout in the global electric vehicle market, especially its competitive strategy in the domestic US market. In response, General Motors responded that it would not comment on speculation, while CATL did not immediately respond to a request for comment.