GM plans U.S. battery development as DOT attacks Ford for China ties
General Motors is developing domestic battery supply chains to reduce reliance on Chinese materials for both energy storage systems and electric vehicles. This move comes amid political scrutiny regarding the domestic auto industry's ties to Chinese manufacturing.
Why it matters
The shift reflects a broader industrial trend toward domesticating critical supply chains to mitigate geopolitical risks and satisfy government policy.
DETROIT — General Motors is in the early stages of developing next-generation battery cells that the company believes can reduce U.S. dependence on China, while boosting domestically sourced materials.
"We're developing a supply chain such that, two years from now, three years from now, it will be domestic," Kurt Kelty, GM vice president of battery and sustainability, told CNBC during an exclusive interview. "That's what we're aiming for — when we get into market, we've got a domestic source for that."
Kelty was referring mainly to battery cells that the automaker expects to use in energy storage systems, or ESS, which are stationary devices for homes and businesses, including data centers. But the company plans to similarly prioritize domestic battery cell production for its future all-electric vehicles, a spokesperson reaffirmed to CNBC.
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