Bloomberg reports that TDK plans to build a new factory in the southern part of the US. This plant could create over 1,000 jobs and make lithium iron phosphate (LFP) cells for GM's electric cars.
According to unnamed sources, GM want to sign a long-term deal with TDK that locks in the price for LFP cells. This move will protect GM from battery price changes and give them more stability in a shaky political climate. It's also a way for GM to boost local production and cut down on risks from international politics.
CATL, the company whose technology GM wants to use, is the biggest EV battery maker in the world. Robin Zeng Yuqun started CATL in 2011. But there's more to the story. Zeng used to work as a manager at TDK and founded another company called Amperex Technology Limited (ATL) in 1999. TDK bought ATL in 2005, so there's a long history between these companies.
Other car companies are making similar moves. Ford, for example, is spending $3.5 billion on a battery plant in Michigan that will also use CATL's technology.
Right now, GM uses its own Ultium cells in its electric vehicles. But they're always looking for ways to improve and adapt, especially with changes that might come from the Inflation Reduction Act and the upcoming presidential election in November.
Source: Bloomberg