GM to import CATL batteries for Chevy Bolt despite China tariffs

General Motors (NYSE:GM) will reportedly import batteries from Contemporary Amperex Technology (CATL) for the next two years despite steep tariffs imposed by Washington on imports from China, The Wall Street Journal reported.

The batteries will be used in the new Chevy Bolt, which will begin production at GM’s (NYSE:GM) Fairfax, Kansas production facility in late 2025.

The company said the decision to buy batteries from CATL – and absorb an additional cost of as much as 80% — is a “stopgap” until its joint venture with LG Energy Solutions can begin commercial production of lower cost lithium iron phosphate (LFP) batteries in 2027.

“For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing,” a GM spokesman told the Wall Street Journal. “To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model.”

With the $7,500 EV tax credit no longer in play, GM’s decision to use CATL batteries is less burdensome, as Chinese-made batteries would have previously made the Bolt significantly more expensive—and less competitive—compared to EVs that qualified for the credit.