Sign up for the Weekly Current newsletter.
Posted by Staff
November 28, 2022
4 Min Read
General Motors Chair and CEO Mary Barra addresses investors Thursday, November 17, 2022 at a meeting in New York City.Image courtesy of General Motors
General Motors Co. expects its rapidly growing portfolio of electric vehicles will be solidly profitable in 2025 in North America as the company scales EV capacity in the region to more than 1 million units annually, ramps up its software revenue opportunities, generates significant greenhouse gas benefits and realizes the positive impacts of new clean energy tax credits, the company told investors at a November 17 meeting in New York City.
“GM's ability to grow EV sales is the payoff for many years of investment in R&D, design, engineering, manufacturing, our supply chain and a new EV customer experience that is designed to be the best in the industry,” stated GM Chair and CEO Mary Barra. “Our multi-brand, multi-segment, multi price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium Platform and vertical integration will allow us to continuously improve battery performance and costs.”
Strong Foundation to Drive EV Growth
In the next three years, GM plans to move very aggressively toward EV leadership as EV adoption is expected to approach 20% of U.S. industry sales in 2025:
GM will have multiple entries in pickup, SUV and luxury segments that represent about 70% of EV industry volume, including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ and the GMC Sierra EV
GM is launching a new digital retail platform with its U.S. dealer partners to enhance the shopping and purchase experience for EV customers and reduce costs to GM by an estimated $2,000 per vehicle
Five GM assembly plants in the U.S., Canada and Mexico will be building EVs
BrightDrop—GM's tech startup creating EVs, eCarts and software—is on track to reach $1 billion in revenue in 2023, as GM's CAMI plant in Ontario launches full production of the BrightDrop Zevo 600 delivery van next year, and scaling to a projected 50,000 units annually by 2025
GM's battery cell joint venture Ultium Cells will be operating plants in Ohio, Tennessee and Michigan by the end of 2024, making the company a leader in domestic cell production; a fourth U.S. cell plant is planned
GM has secured binding commitments for all the battery raw material it needs to deliver its 2025 capacity target
The company continues to secure its needs beyond 2025 with strategic supply agreements and direct investments in natural resource recovery, processing and recycling
During the meeting with investors, Paul Jacobson, GM executive vice president and chief financial officer, updated the company's 2022 guidance and provided several key performance indicators to help investors track the company's transformation and financial performance through 2025, all of which exclude the positive benefits from the recently passed clean energy tax credits.
“We've built the foundation to rapidly scale our EV portfolio, make it profitable and maintain strong margins during a period of high investment,” stated Jacobson. “Our Ultium Platform and battery technology will only get better and less expensive over time, and we have enterprise-wide momentum in EVs, Cruise, software-defined vehicles and new businesses like BrightDrop that will help us achieve our revenue and margin targets by the end of the decade.”
GM's 2023-2025 key performance indicators include:
Total company revenue is expected to grow at a 12% compound annual rate through 2025, reaching more than $225 billion as EV volumes and software revenue grow. Revenue from EVs is expected to be more than $50 billion in 2025.
GM expects to build 400,000 EVs in North America from 2022 through the first half of 2024 and grow capacity to 1 million units annually in North America in 2025.
GM expects to reach U.S. battery cell capacity of more than 160 GWh and 1.2 million cells per day by mid-decade.
GM is focused on reducing the cell costs for the next generation of its Ultium batteries to under $70/kWh by mid- to late-decade
Total capital spending is expected to be $11-13 billion per year through 2025, funded by ongoing healthy cash flows.
Long-term nickel supply agreement signed with Vale
GM concurrently announced that the company has signed a term sheet with Vale Canada Ltd. for the long-term supply of battery grade nickel sulfate from Vale's proposed plant at Bécancour, Québec, Canada. This agreement secures for GM a supply of nickel sulfate from a US free-trade partner to support its EV production needs in North America.
Under terms of the agreement, Vale will supply battery grade nickel sulfate, equivalent to 25,000 metric tons per year of contained nickel, for use in GM's Ultium battery cathodes, which will power a broad portfolio of electric vehicles including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV Pickup and SUV. The amount of contained nickel is sufficient to supply approximately 350,000 EVs annually. Deliveries are targeted to commence in the second half of 2026.
The initiative highlights Vale's uniquely strategic position as North America's largest producer of finished nickel. Nickel sulfate is the chemical compound used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.
You May Also Like
Video: Focus AI's Report Unveils Future Battery BreakthroughsFeb 23, 2024|1 Min Read
Wireless Charging: Transforming Electric Bus EfficiencyFeb 22, 2024|2 Min Read
Comparing Advanced Measuring Techniques for Verifying Critical Dimensions of E-Motor Stator AssembliesFeb 22, 2024|1 Min Read
Sunwoda EVB Pursues IPO, Green InitiativesFeb 22, 2024|4 Min Read
Sep 12 - Sep 14, 2023
North America's largest advanced battery trade show and conference brings together engineers, business leaders, top companies, and innovative thinkers to discover ground-breaking products and create powerful solutions for the future.Register Now