DETROIT — General Motors is advancing next-generation battery technology aimed at shifting production away from China, a move that comes as the Trump administration intensifies scrutiny of Ford Motor’s supply chain relationships with Chinese companies.
Kurt Kelty, GM’s vice president of battery and sustainability, told CNBC that the automaker is constructing a domestic supply chain for its emerging energy storage systems, also known as ESS. These stationary batteries are designed for residential, commercial, and data center applications.
“We’re developing a supply chain such that, two years from now, three years from now, it will be domestic,” Kelty said. “That’s what we’re aiming for — when we get into market, we’ve got a domestic source for that.”
While GM currently produces other battery chemistries through a joint venture that utilizes undisclosed quantities of Chinese materials, the company plans to prioritize US-made cells for both its ESS products and future all-electric vehicles.
To achieve this, GM has partnered with Denver-based startup Peak Energy to develop sodium-ion battery cells, with commercial production expected around 2029. The technology relies on sodium derived from soda ash, a material widely available in the United States, rather than lithium or ferrous sulfate, which are heavily dominated by Chinese supply chains.
Kelty described sodium-ion as superior to the lithium iron phosphate, or LFP, batteries currently used by competitors. Unlike LFP, sodium-ion cells can operate effectively across a wider range of temperatures without active cooling, significantly reducing costs and complexity for energy storage installations.
“We think it’s more valuable to develop this all domestically, take advantage of domestic supply chains, and develop a technology that’s actually better than the incumbent technology,” Kelty said. He added that GM hopes to “leapfrog” Chinese technology rather than compete directly within existing frameworks.
The strategic shift occurs against a backdrop of heightened political pressure. Earlier this week, Transportation Secretary Sean Duffy expressed “profound concern” regarding Ford’s ties to Chinese firms, specifically citing Ford’s licensing of LFP battery technology from CATL. Despite being the top vehicle producer in the US, Ford faces criticism for this arrangement.
China currently controls approximately 85% of global EV battery cathode active material production and more than 90% of anode active material, according to the International Energy Agency. This dominance allows Beijing to wield significant influence over the global battery supply chain.
Sam Abuelsamid, vice president of market research at Telemetry, noted that while producing LFP materials domestically is feasible, sodium-ion technology may ultimately prove cheaper and easier to scale in the United States.
GM is investing $900 million in new battery laboratory facilities at its global tech campus in suburban Detroit. The project includes a prototyping manufacturing space spanning more than 500,000 square feet, set to begin operations later this year.
However, analysts caution that this investment is modest relative to the capital required to substantially diminish China’s grip on the industry. Kelty acknowledged the timeline but emphasized the strategic importance of American-developed technology for the national economy.
“Batteries are really critical for a lot of different areas of our economy here,” Kelty said.
Ford’s CATL partnership must sting now. But let’s see if GM can actually scale this before 2029 without more subsidies.
Finally, a realistic path away from Chinese lithium dominance. Sodium-ion could be the game changer for US energy independence.