U.S. policymakers may not want to see it, but the future of GM and the broader U.S. electric vehicle market may be deeply tied to Chinese battery technology. The billionaire Zeng Yuqun, founder of CATL, sends this signal. He argued that if it does not rely on its own batteries, it will not only be difficult for the United States to achieve large-scale popularization of electric vehicles, but the cost will also be unbearable.
According to the Wall Street Journal, the Chinese battery giant currently supplies batteries to about 1/3 of the world's electric vehicles, and its recent annual report shows that its annual profit has exceeded 10 billion US dollars. Its rapid rise is partly due to aggressive investment in lithium iron phosphate (LFP) chemistry, which offers significant cost advantages over nickel-or cobalt-based solutions.
For car companies such as GM, people-friendly is still a key obstacle to the popularity of electric vehicles. With the advancement of entry-level electric vehicles, the industry has refocused on LFP technology, and it is in this area that Ningde is in a leading position. Despite geopolitical tensions and tariff barriers of up to 60%, GM has turned to the Ningde era for a solution and is importing Ningde era cells from China for the new Chevrolet Bolt models.
As a result, while GM continues to invest in local manufacturing, it will have to rely on some overseas sources of technology in the short term to remain competitive. Generic is not an isolated case. Ford also plans to advance a $3 billion battery factory project in Michigan that will produce cells based on the Ningde-era design under a licensing agreement. At the same time, Tesla has also integrated the technology of the Ningde era into its operating system in Nevada energy storage business.
Looking ahead, CATL is investing heavily in next-generation battery solutions, including technologies such as sodium-ion batteries that are expected to further reduce costs and improve low-temperature performance. Zeng Yuqun also emphasized that electric vehicles are the basic technology for autonomous driving, which further highlights the long-term strategic significance of large-scale battery production.
Although current U.S. restrictions prevent the establishment of a wholly-owned manufacturing business in the United States during the Ningde era, Zeng believes that changing economic realities may eventually ease these barriers. He once said: "Business relationships are always stronger and more lasting than politicians.
In addition, a poll released by GM Authority last year showed that the opinions of interviewed readers were basically the same as whether to buy GM electric vehicles equipped with Chinese-made battery technology.