GM's Strategic Innovations for Battery Cost Reduction
During his keynote at the Battery Show North America, Kurt Kelty, GM's VP of Battery Cell and Pack, outlined cost reduction strategies for battery technology.
During his keynote address at the Battery Show North America, Kurt Kelty, GM's Vice President of Battery Cell and Pack, outlined the company's strategic approach to reducing battery costs. Kelty highlighted several key initiatives that GM is pursuing to enhance its battery technology's affordability and efficiency.
Partnerships and joint ventures
One of the primary strategies Kelty emphasized was the significance of partnerships and joint ventures. He said, “By introducing partners like Samsung and others, alongside our strong relationship with LG Energy Solution, we improve our ability to adapt to changes in the market by expanding our battery strategy with a common set of technologies that can be used within our existing Battery Pack.”
Kelty's focus on joint ventures indicates that GM recognizes the value of leveraging external expertise and resources to enhance its competitive position in the battery market. GM announced a joint venture agreement with Samsung last month, which will be located in Georgia and Indiana, with production planned to start in 2027. By pooling resources and knowledge, GM aims to drive innovation while reducing costs, ultimately benefiting consumers.
Samsung SDI President & CEO Yoon-ho Choi(middle) poses with Kurt Kelty, executive vice president of General Motors' Battery Cells & Pack Business(right) during a signing ceremony for an EV battery joint venture at Samsung Town in Seocho, southern Seoul, on Aug. 27. Courtesy of Samsung SDI.
Improved manufacturing efficiencies
Kelty also highlighted the impact of improved manufacturing processes on cost savings. He noted that GM is currently experiencing “tens of millions of dollars” in cost savings this year, driven by enhanced equipment effectiveness and yield at their joint venture facilities. He elaborated, “GM built the right facilities, the right team, the right partners to build batteries efficiently and cost-effectively.”
This statement reflects GM's commitment to investing in vertically integrated battery development. By optimizing manufacturing processes, GM is poised to meet customer demand more efficiently, ensuring a steady supply of batteries for its expanding EV lineup. The focus on improving equipment effectiveness directly contributes to cost savings, further solidifying GM's position in the battery landscape.
GM's presentation slide at The Battery Show North America. Courtesy of Maria Guerra
Chemistry and form factor innovations
Another crucial aspect of Kelty's presentation was the discussion around changes in battery chemistry and form factor. He explained that GM's future battery roadmap will incorporate lithium iron phosphate (LFP) chemistry alongside high nickel chemistries. Kelty noted that this shift is expected to yield significant benefits: “ We'll add LFP to the North American battery chemistry portfolio, and we'll use it in modules where we can achieve outstanding range at a lower cost.” Kelty also noted that from 2023 to 2024, there was an average cost reduction of $60 per kilowatt-hour, with an additional $30 per kilowatt-hour decrease expected in 2025. He added that costs will be driven even lower through the expanded use of LFP in their new battery pack designs.
Additionally, the transition to prismatic cell formats was highlighted as a means to streamline design and reduce costs. By simplifying the battery architecture, GM aims to drive down production costs while enhancing performance, aligning with the company's overarching goals of affordability and efficiency.
Kelty's presentation at the Battery Show showcased GM's proactive strategies for battery cost improvements. As the automotive industry transitions toward EVs, these initiatives will play a pivotal role in ensuring that GM remains competitive in the rapidly evolving battery market.
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