GM is reportedly in talks to buy power batteries using CATL technology and assemble them in the U.S. to avoid tariffs

On September 13, according to Reuters and Bloomberg, a person familiar with the matter confirmed on Thursday local time that General Motors is in talks to purchase power batteries that use CATL's technology and will be assembled in a new factory in the United States.

GM's proposed plant, to be invested and operated by Japanese consumer electronics company TDK Corp, is expected to be located in the southern United States and will create more than 1,000 jobs.

The talks are ongoing, many details are unclear and a final deal is not expected to be reached immediately, the sources said. The deal could help GM produce lower-cost batteries and avoid new U.S. tariffs by assembling them in the United States.

In response to the rumors, GM said it would not comment on speculation. "Our electric vehicle strategy focuses on designing products that can continuously reduce costs, improve performance and achieve localized production. Battery technology is a key factor in achieving this strategy." CATL did not immediately respond to a request for comment.

Industry officials have said that if Ford is allowed to proceed with its deal with CATL, other automakers would quickly follow suit in an effort to reduce costs.

According to previous reports, in February last year, Ford Motor announced that it would build a battery factory with CATL in Michigan, the United States. Ford Motor owns the new factory, while CATL will provide construction and operation services and license battery patent technology. The factory is currently under construction. The factory will produce lithium iron phosphate batteries to provide support for some of Ford's car models manufactured in the United States.