General Motors has announced it will begin ramping up production of its all-electric vehicles, with plans to invest an additional $7 billion through to 2025 in order to better compete with industry leader Tesla.
On Thursday, GM announced it will increase spending on the production of all-electric and autonomous vehicles by an additional 35% from its initial spending plans released back in March. The sudden increase in investments into the EV space will help fuel GM’s ambitious intentions to release 30 new electric vehicles across the world by 2025, as well as 20 new models just in North America. By 2025, GM is anticipating to reach 1 million in global EV sales, which would be a fierce competition for Tesla, that last year accounted for 3 out of every 4 EVs sold across the US.
In recent years, electric vehicles manufactured by major automakers such as GM and Audi have done little to penetrate the EV market as much as Tesla has, but the ever-evolving technology surrounding battery cells could soon shift that trend. Many of the new vehicles that GM plans to manufacture will come equipped with the company’s new Ultium battery cells, which will be produced via a $2.3 billion joint venture with LG Chem.
Several prominent advancements in engineering have lead to the maximum range of Ultium-based batteries to be extended from 400 miles to 450 miles on a full charge. The forthcoming generation of Ultium cells will create downward pressure on current EV prices, eventually bringing them on par with gasoline-powered cars before the end of the decade. Increasing the range of battery cells has posed a significant challenge for the EV industry, but according to GM, its latest prototype Ultium batteries are expected to create twice as much energy density at half the cost of today’s technology.
Along with the additional investment of $7 billion, GM plans to release the Hummer and the Cadillac Lyriq crossover nine months ahead of schedule, in the first quarter of 2022. GM has said it will push its other electric vehicle releases such as three GMC models and four Chevrolet and Cadillac models ahead of schedule as well.
Information for this briefing was found via GM. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.