New Chevy Bolt’s EV Batteries Sourced from China

Key Takeaways

GM will import lithium iron phosphate (LFP) batteries from China’s CATL for the 2027 Chevrolet Bolt EV.
The Bolt will have a production cost of under $30,000, making it one of the most affordable EVs in the U.S.
GM is set to begin production at its LFP battery factory in Tennessee by the end of 2027, transitioning to domestic batteries later.

GM Plans for 2027 Chevrolet Bolt EV

General Motors (GM) has announced that the upcoming 2027 Chevrolet Bolt EV will initially rely on lithium iron phosphate (LFP) batteries imported from China’s Contemporary Amperex Technology (CATL). This decision comes despite the tariff implications and GM’s commitment to establishing domestic LFP battery production in the U.S.

As reported by the Wall Street Journal and confirmed by GM, the Bolt EV will source these batteries from CATL for the first two years of production. The goal is to transition to U.S.-made batteries as local manufacturing ramps up. A GM spokesperson noted that relying on foreign suppliers for LFP batteries has been standard practice for several U.S. automakers. The temporary reliance on imported batteries aims to keep the Bolt competitive in the growing EV market.

Currently, all of GM’s other electric models, including the Chevy Equinox EV and Cadillac Celestiq, utilize batteries manufactured in the U.S. With the 2027 Bolt being unique in this regard, it is anticipated to become GM’s most affordable electric vehicle, priced at under $30,000. However, this reliance on Chinese-made batteries, which incurs an import tariff of approximately 80%, could impact profitability. Despite these challenges, GM President Mark Reuss expressed optimism regarding pricing and profitability, stating the new model aims to maintain a price point similar to its predecessor.

The revised Bolt model will head into production at GM’s Fairfax Assembly Plant in Kansas by the end of this year, with deliveries commencing in 2024. This new iteration is expected to feature significant enhancements, including a Tesla-style charging port and LED lighting, making it attractive to budget-conscious consumers.

In tandem with the Bolt’s rollout, GM has plans in place to collaborate with LG Energy Solution to establish an LFP battery factory in Tennessee. This facility is expected to be operational by the end of 2027, allowing GM to shift to domestically produced battery supplies for future models.

Overall, GM’s approach to the 2027 Chevrolet Bolt EV reflects a strategic effort to introduce affordable electric vehicles in a competitive market, while balancing the logistics of battery sourcing between international suppliers and emerging U.S. manufacturing capabilities.

The content above is a summary. For more details, see the source article.