General Motors (GM) has announced that the upcoming 2027 Chevrolet Bolt EV will be equipped with lithium iron phosphate (LFP) batteries sourced from China’s Contemporary Amperex Technology (CATL). This decision comes despite the existence of tariffs and the fact that GM is in the process of bringing LFP battery production to the United States.
According to a report by the Wall Street Journal, GM will initially import LFP batteries from CATL for the first two years of production of the new Bolt EV. This move serves as a temporary solution until American production of LFP batteries can ramp up and replace the Chinese imports.
A GM spokesperson confirmed the decision, stating that “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.”
While GM’s electric models, such as the Chevy Equinox EV and Cadillac Celestiq, are currently fitted with U.S.-made batteries, the new Bolt EV will be the only GM electric car powered by imported batteries. This decision may impact GM’s profitability, as Chinese-made batteries incur import tariffs of approximately 80%. However, with the federal tax credit set to expire on September 30, the new Bolt will not miss out on this incentive.
The 2027 Chevrolet Bolt is expected to be a redesigned version of the previous Bolt EUV model. Production is scheduled to begin later this year at GM’s Fairfax Assembly Plant in Kansas, with deliveries anticipated to commence next year. The price of the 2027 Bolt is estimated to be under $30,000, making it one of the most affordable EVs in the market.
In parallel, GM is collaborating with LG Energy Solution to establish an LFP battery factory in Tennessee by the end of 2027. While the timeline for American production of LFP batteries does not align with the launch of the new Bolt, GM remains optimistic about turning a profit. GM President Mark Reuss expressed confidence in the profitability of the new Bolt, stating that it will be priced similarly to its predecessor and delivered at a profitable point.
Recently, GM teased the upcoming affordable EV, revealing features such as a Tesla-style NACS charging port and LED lighting at the front and rear. The company is committed to delivering a competitive and profitable electric vehicle that meets the needs of consumers.