General Motors on Tuesday detailed plans to use cost-effective lithium iron phosphate (LFP) battery cells in future EVs.
It now has a number of cost-cutting measures that have gone into the next Bolt EV. As reported by InsideEVs, GM executives said at an investor conference that the LFP cells will combine with other packaging and manufacturing changes to reduce $6,000 in EV manufacturing costs, compared to current models.
2020 Chevrolet Bolt EV Review Review – Portland OR
GM previously revealed that it will build a “low-cost” version of the next-generation Bolt EV with LFP cells, which could be a key factor in making it the most affordable EV in the US, according to GM. The new Bolt EV is expected to arrive in 2025 as a 2026 model, though it's unclear if an LFP-powered version will be available at launch.
InsideEVs also reports that GM is in talks with Japanese company TDK Corp. to manufacture LFP cells in the US using technology licensed from CATL. It was reported earlier this year that GM was seeking a US battery supply agreement with CATL directly, despite the “foreign organization of concern” language introduced in the EV tariff rules introducing a legal gray area for manufacturing batteries based on Chinese intellectual property.
A conceptual diagram of the Ultium Cells plant in Tennessee
About one-fifth of the world's EV batteries are LFP. They do not depend on nickel and cobalt, which makes them cheap and environmentally friendly. They are also more prone to overheating, thermal runaway, and heat-related damage than the nickel manganese cobalt (NMC) cells used in current GM EVs. Take-up in the US has been slow, but that is changing, as Ford already wants to make LFP cells under license from CATL.
Until now, GM has focused on a specific NMC wallet format combined with LG, but in 2023 CEO Mary Barra said that the automaker was flexible in battery cells and was always looking at other formats. Now the automaker seems ready to put its money where its mouth is, which may also be a factor in the decision to abandon the Ultium brand that is so associated with its original pocket cells as it looks diverse.