GM to increase e-mobility investments in batteries and cars

GM to increase e-mobility investments in batteries and cars


General Motors wants to increase its investments in electric and automated driving vehicles again by 2025 – from a previously planned 27 billion to 35 billion US dollars, according to a media report. Meanwhile, GM offshoot Cruise has presented the first nearly 100 pre-production models of its Cruise Origin.

In November 2020, General Motors announced its intention to increase its investment in electric vehicles as well as automated driving vehicles from 20 to 27 billion US dollars by 2025 – complemented with the prospect of 30 purely electric models worldwide and electric car sales of 40% by 2025 too.

Now Reuters, citing people privy to the plans, has reported that GM wants to add another eight billion dollars to the investment. Interestingly, less than a month ago, US competitor Ford announced its intention to increase e-mobility spending by eight billion dollars to a healthy 30 billion dollars by 2030.

According to various media, part of GM’s additional investment is to flow into two more battery factories in the USA. The Associated Press news agency, citing statements by GM President Mark Reuss, reports that the plans for these additional battery factories will be announced officially this week. However, according to other sources, the company has not yet decided exactly where the plants will be built.

Together with LG Energy Solution, GM is already building a battery plant in northeast Ohio. Ultium Cells, the joint venture of the two companies, plans to build a second plant in Spring Hill in the US state of Tennessee, with the opening of the 2.3 billion dollar factory planned for 2023. GM wants to completely abandon the internal combustion engine by 2035 in favour of electric models.

Meanwhile, Cruise, the General Motors offshoot for self-driving cars, has produced the first nearly 100 pre-production models of the Cruise Origin electric vehicle presented in early 2020 for ridesharing use. The Origin is designed for driverless use and so does not provide a traditional seat for the driver. Instead, up to six passengers will sit opposite each other in a 3+3 seating configuration.

The pre-production models will undergo an intensive testing and validation process this summer, according to Cruise. To commercialise the vehicles, the company says it has received a five-billion dollar line of credit from GM Financial. Production for the autonomous electric pod is currently being set up at GM’s ‘Factory Zero’ in Detroit-Hamtramck.