GM investing $6.6 billion in bid to dethrone Tesla in EV sales by 2025
[ad_1]
Mary Barra is the chief executive officer at General Motors Co. and presented the Silverado choice vehicle in a livestreamed event that took place during the CES 2022 tradeshow, Las Vegas, Nevada on Wednesday, January 5, 2022.
Bridgett Bennett | Bloomberg | Getty Images
DETROIT – General MotorsIn Michigan, the company will make investments of approximately $6.6Billion over the coming years in order to grow electric pickup truck production as well as build an EV battery plant.
These new investments form part of GM’s plan to double its North American electric vehicle production capacity to 1,000,000 units by 2025. The automaker made the announcement Tuesday.
GM stated that it would overtake TeslaAmerica’s largest seller of electric vehicles in the mid-decade. They are part the $35 billion GM promises to spend on EVs in 2025.
“We will be the EV-leader by mid-decade with the right products, battery cells capacity, and vehicle assembly capabilities,” GM CEO Mary BarraIn a release
GM still has a lot of work to catch up with by 2025. Tesla does not disclose U.S. sales figures. delivered 936,172 electric vehiclesGlobally, 2021 GM sold less than 25,000 EVs last year — ranking third in U.S. EV sales behind Tesla and Ford, which sold 27,140 of its Mustang Mach-E EVs.
LMC Automotive is an automotive forecasting and insights firm. It expects Tesla’s U.S. production to grow from 580,000 to 1 million units later in the year. This will be after its Texas plant becomes fully functional.
Electric vehicles
Investments announced Tuesday included $2.6 billion in a new battery facility through a joint venture in Lansing with LG Energy Solution, Mich.; and $4 billion in a conversion of its Orion Assembly plant near Detroit for electric trucks. These will include the upcoming Chevrolet Silverado as well as GMC Sierra models.
Tuesday saw GM announce an additional $510million in investments at two Lansing-area assembly plants in order to improve current, non-electric cars.
Many of these new investments have already been made. previously been reportedGM is not revealing how many cars it plans to produce by 2025 or a timeline for production. It is estimated that the capital infusion will create approximately 4,000 additional jobs while retaining 1,000 existing employees.
“Michigan will be the recognized hub and leader of innovation in the U.S. for EV R&D and manufacturing,” GM President Mark Reuss said during a media briefing.
According to Reuss, Orion Assembly in Orion and GM’s Factory Zero in Detroit will build the majority of 1,000,000 units of electric cars in North America. Orion should be able produce around 360,000 units annually by the mid-decade. Factory Zero is aiming to produce 270,000 units. GM has also converted plants in Canada, Mexico and Tennessee to make EVs.
GM projects it will convert 50% of its North American assembly capacity to EV production by 2030 – five years ahead of a plan to exclusively offer light-duty electric vehicles by 2035.
The former Detroit-Hamtramck plant is set for production, just two years after GM made the huge $2.2 billion investment in the renovation of the facility. This will allow the company to produce a range of electric trucks and SUVs.
Jeffrey Sauger Photography for General Motors
Batteries
In late 2024, the new battery plant of LG measuring 2.8 million square feet is scheduled to be open. This is the third announcement of such facilities in America by GM. The opening of a battery plant in Lordstown in Ohio, later in the year is anticipated. A second one will be built in Tennessee in 2023. GM will likely announce another plant within the foreseeable future. These plants were made possible by a joint venture between LG and Ultium Cells LLC.
The supply chain of electric cars is dependent on battery cell production. Other than that, TeslaAutomakers have a number of Gigafactory batteries plants located in Nevada, China, and Germany. However, they have largely contracted this production out to third-party suppliers. To have better control of the production and raw materials, automakers now want to work with suppliers. materials needed for the batteries.
GM has chosen the name Ultium to describe its new-generation electric vehicles and batteries. Automaker Ultium claims its own cells are capable of driving up to 450 miles with full charging. It can also accelerate from 0-60 in under three seconds. These cells, which are not found in other cylinders today, are uniquely contained in pouches.
According to The Michigan Economic Development Board, Tuesday’s approval of $824 Million in Incentives and Assistance for GM’s Investment was made by the board. Associated Press.
[ad_2]