In October 2020, GM announced a $2 billion investment to transition its Spring Hill assembly plant to be dedicated to EVs. Since then, the automaker has made several other promises in the electric vehicle market.
Between 2020 and 2025, GM will invest more than $27 billion in EV and AV product spending, exceeding their gas and diesel investment. The money will go towards creating 30 new all-electric models by 2025–making 40 percent of GM’s product line electric.
“We are transitioning to an all-electric portfolio from a position of strength and we’re focused on growth,” said Mary Barra, chairman and CEO. “We can accelerate our EV plans because we are rapidly building a competitive advantage in batteries, software, vehicle integration, manufacturing and customer experience.”
GM’s Ultium, a low-cost battery technology unveiled eight months ago, is approaching a second-generation of development, with GM projecting that by 2025 Ultium packs will cost 60% less than the batteries in use today, with twice the energy density expected. Now, instead of the original 400 miles per charge, the batteries can get 450 miles. The second-generation cells will bring EVs’ price down significantly so that the average American can afford an environmentally friendly model.
The company said it “accelerated” its plans for GMC’s Hummer EV (from 50 months to 26), the Cadillac Lyriq and other unannounced models that include GMC and Chevrolet pickups as well as a Chevy compact crossover.
“We think there’s a huge opportunity to grow EV demand, and that’s why we’re accelerating our business,” Barra told a group of investors on a Barclays conference call. “We need to have vehicles not only at the top end…but also attainable for everyone.”
Also joining the electric vehicle mania in the past few months are Volkswagen, Ford, and of course, Tesla.
“Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle,” said Barra.