U.S.-China Auto Industry: Battery Technology Licensing Deal

American automakers seek access to cutting-edge battery technology while navigating complex U.S.-China relations.

### Navigating Political Tensions: U.S. Automakers and Chinese Battery Technology
* 🤝 The current landscape resembles a "**political handball**," with the U.S. and China in a **delicate balancing act** as American automakers navigate their interests amid geopolitical tensions.
* 🔋 Major U.S. automakers like GM, Ford, and Stellantis have invested **billions into battery production** and joint ventures with Korean battery manufacturers, receiving **substantial government subsidies** in the process.
* ⚡ However, these companies face challenges in battery production, as creating electric vehicles (EVs) is a **complex endeavor**, particularly for traditional automakers venturing into this space for the **first time**.
* 💡 A potential deal, still in tentative discussions, could allow American car companies to **access advanced battery technology** from a Chinese firm while avoiding political pitfalls associated with **direct collaboration**.
* 🇯🇵 Notably, a Japanese company, TDK, would manage operations, acting as a **middleman to facilitate the licensing of battery technology** from the Chinese company Seattle, which is less known but **significant in the consumer electronics sector**.
* 📈 GM and other automakers would purchase batteries through fixed-term contracts, providing them **some insulation from price fluctuations** in the market.
* 🗳 The political sensitivity surrounding this deal means that the outcome of the **upcoming presidential election in November** could **significantly influence the negotiations and their viability moving forward**.

GM in Talks to Buy Chinese Batteries Made in US by TDK

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

American Automakers' Struggle with Battery Production

American automakers are caught in the middle of the U.

-China decoupling, struggling to sell EVs and make batteries despite significant investments.

A tentative deal is being discussed for American car companies to access cutting-edge battery technology from a Chinese company, with operations run by a Japanese conglomerate.

The plan involves fixed-term contracts for GM and other automakers to buy the batteries, aiming to alleviate their production challenges.

The Auto Industry's Adaptation to the EV Market

A Japanese company is now acting as a middleman in the auto industry's shift towards electric vehicles (EVs).

This development marks a change in how companies like Ford and Tesla are navigating licensing deals and political challenges.

GM and Japan's TDK, known for making batteries for consumer electronics, are looking to enter the EV battery business by targeting states in the southern U.

The Political Impact on Presidential Election Talks

The upcoming presidential election in November is politically sensitive and may influence the outcome of ongoing talks.

The results of the election could have a significant impact on the negotiations.

There is a potential correlation between the election outcome and the direction of the talks.