GM Boosts Spending On EVs And AVs To $35 Billion By 2025, Plans Two More Battery Plants

GM Boosts Spending On EVs And AVs To $35 Billion By 2025, Plans Two More Battery Plants


General Motors has upped its projected profits for the first half of 2021 to between $8.5 and $9.5 billion, an increase from the earlier forecast of $5.5 billion. With that rosy financial outlook, CFO Paul Jacobson also announced that the automaker is also increasing its bet on electric and automated vehicles and is now planning to spend $35 billion by 2025, an increase of $8 billion from the previous plan. Part of that increased spend will go toward adding two additional lithium ion cell production plants. 

That brings GM’s

GM
total four cell production facilities in North America by mid-decade, more than any other automaker or cell producer at the moment. According to Jacobson, the new plants will be on a similar scale to the two plants already under construction in Lordstown, Ohio and Spring Hill, Tennessee with a total planned capacity of approximately 140 GWh per year. Each plant is expected to require about $1.2-1.3 billion of investment from GM with a similar amount from Ultium Cells joint venture partner LG Energy Solutions. 

That will likely be sufficient for at least 1 million vehicles annually and potentially 1.5 million depending on the mix of vehicles and battery size per vehicle. In 2019, GM produced 2.75 million vehicles in North America, so that cell production capacity could potentially support half of its annual vehicle production. GM has previously stated that it is targeting 1 million EV sales annually by 2025. 

For now, GM has not made any adjustments in the number of EV nameplates it has planned, staying with 30 models globally and 20 for the North American market. This includes the Chevrolet Bolt EV, Bolt EUV and Silverado, GM Hummer pickup and Hummer SUV, Cadillac Lyriq and Celestiq and Cruise Origin. Additional offerings from each of the four mainstream brands are expected to be announced over the next 12-18 months. 

Aside from the expected spending on the two new cell plants, GM has not provided any details on how the rest of the additional spending will be distributed. Some of that is expected to go toward conversion of additional vehicle assembly plants from internal combustion to electric vehicles. So far four plants have been allocated for EV production. Spring Hill, Detroit-Hamtramck, Orion, Mich. and Ingersoll, Ontario. Additional component plants will likely be constructed or converted to support production of electric motors and other systems for EVs.

Some of the money will be allocated to scaling up deployment of automated vehicles through subsidiary Cruise. Yesterday, Cruise announced that it had arranged a $5 billion line of credit with GM Financial to fund the purchase and operation of Cruise Origin robotaxis, but Cruise will likely get additional investment from GM as part of the new capital spending.



Source link

About The Author

We are independent. we bring you the Real news from around the world.

Related posts

Leave a Reply