By Nora Eckert
(Reuters) -General Motors will import electric vehicle batteries from Chinese battery giant CATL, a source familiar with the matter told Reuters on Thursday.
The arrangement is a stopgap for GM in the next couple of years as it works to manufacture its own lower-cost batteries made with lithium iron phosphate (LFP) chemistry, the source said.
"For several years, other U.S. automakers have depended on foreign suppliers for LFP battery sourcing and licensing. To stay competitive, GM will
temporarily source these packs from similar suppliers to power our most affordable EV model," GM said in a statement.
The Detroit automaker added that it sells 12 EVs in the United States with domestically-produced battery cells, and in 2027 will bring LFP production to the U.S.
The Wall Street Journal earlier reported GM's plans to import the batteries.
Global automakers are facing stiff competition from Chinese EV makers and a trade war impacting imports of crucial parts, including rare earth materials, which has pushed production costs higher.
CATL didn't immediately respond to a request for comment.
GM's crosstown rival Ford is also making battery cells using tech from CATL to help reduce costs on EV batteries.
(Reporting by Nora Eckert in Detroit ; Additional reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore and Mike Colias, Kirsten Donovan)
