General Motors is in the early stages of developing next-generation battery cells aimed at decreasing U.S. dependence on China while increasing the use of domestically sourced materials.
Kurt Kelty, GM's vice president of battery and sustainability, stated that the company is working towards a domestic supply chain for battery cells, particularly for energy storage systems (ESS) and future electric vehicles (EVs).
GM has partnered with Peak Energy to create sodium-ion battery cells, which utilize more abundant U.S. materials like sodium, as opposed to lithium and ferrous sulfate, which are predominantly sourced from China. The International Energy Agency highlights China's dominance in the EV battery market, producing around 85% of the world's cathode active material.
GM's strategy includes launching commercial production of sodium-ion batteries by 2029 while currently manufacturing lithium iron phosphate (LFP) cells with LG Energy Solution. This initiative comes amid scrutiny of Ford's connections to Chinese companies, particularly regarding battery production.
Kelty emphasized the importance of developing a domestic battery supply chain and believes that sodium-ion technology could surpass existing options. However, experts like Sam Abuelsamid caution that establishing a fully domestic supply chain will take time, especially as China continues to innovate in battery technology.
GM is investing $900 million in new battery lab facilities to support this transition, although this amount is relatively small compared to the overall investment needed to significantly reduce China's influence in the industry