Click above↑ on "ElectroMotive Insider" to follow us, and don’t forget to mark us with a ☆ "star"!
According to a report by LatePost, CATL is currently in discussions with General Motors for a partnership under the LRS (Licence Royalty Service) model, planning to jointly build a lithium iron phosphate (LFP) battery factory in North America. In this phase, the planned annual production capacity of the factory is expected to be no less than that of the factory CATL is building in collaboration with Ford. The location for this cooperative factory with General Motors could be either in the United States or Mexico.
In terms of the partnership model, CATL’s collaboration with General Motors is likely to mirror its partnership with Ford: CATL will be responsible for constructing the battery production lines, setting up the supply chain, commissioning the production line equipment, and managing the manufacturing process. The factory's capital expenditures will be entirely covered by the automaker. CATL will not hold shares in the joint factory but will instead collect patent licensing fees and service charges. The factory built in collaboration with Ford is scheduled to commence operations in 2026.
In February 2023, Ford announced plans to collaborate with CATL in building an electric vehicle battery factory in Marshall, Michigan, to produce new lithium iron phosphate batteries. The factory is set to involve an investment of $3.5 billion, expected to start operations in 2026, and will employ 2,500 workers. On September 25, 2023, Ford stated it would pause the construction of the electric vehicle battery factory in Michigan, indicating it would proceed with construction once confident in the ability to operate competitively. This pause was confirmed, and expenditures were restricted. Two months later, on Tuesday, Ford announced the resumption of construction at the electric vehicle battery factory in Marshall, Michigan. However, the company plans to reduce the factory's investment, production capacity, and employment projections.
Following the signing of the "Inflation Reduction Act" in the United States, the protectionist stance towards domestic supply chains has become more pronounced. Ford’s initial plan to seek CATL’s technological support for this factory faced criticism.
