General Motors has reaffirmed its intention to continue importing electric vehicle batteries from China for its new Chevrolet Bolt, despite heavy tariffs.
Importing Chinese Batteries for Chevrolet Bolt
General Motors, the largest U.S. automaker, plans to import EV batteries from Chinese firm Contemporary Amperex Technology Co. Ltd. (CATL). These lithium iron phosphate batteries are expected to be used in the upcoming Chevrolet Bolt for the next two years, while local production begins in Tennessee.
Cost Analysis and Tariff Impact
Despite the 80% tariff on Chinese batteries, GM sees this arrangement as necessary to maintain competitive prices for its EVs. Analysts point out that LFP batteries are about 35% cheaper to produce than alternatives, which may help GM keep the new Bolt priced around $30,000.
GM's Plans to Expand Affordable EV Options
With the U.S. tax credit for EV purchases set to be eliminated, the new Bolt will no longer have comparative disadvantages in the market. The new models are expected to be released in 2026 as GM aims to broaden its affordable EV offerings.
GM's strategy to import Chinese batteries and the removal of the EV tax credit could help the company remain competitive in the affordable EV market.
