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Home ยป GM Shifts Gears on EV Battery Strategy, Ditches ‘Ultium’ Branding

GM Shifts Gears on EV Battery Strategy, Ditches ‘Ultium’ Branding

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General Motors (GM) has announced a major pivot in its battery strategy. The automotive giant is bidding farewell to its “Ultium” branding and embracing a more diverse approach to EV power sources. This shift, revealed during a recent investor call, signals GM’s commitment to staying competitive in the rapidly evolving EV market.

Kurt Kelty, GM’s newly appointed vice president of battery development and former Tesla executive, laid out the company’s bold new vision. Gone are the days of GM’s one-size-fits-all battery approach. Instead, the automaker is gearing up to introduce a range of battery technologies tailored to specific vehicle programs.

“It now makes business sense to transition from one-size-fits-all to new program-specific batteries,” Kelty explained. He added that while the Ultium name will continue to be used for joint venture manufacturing sites, it’s time for GM to enter the next phase of its EV journey.

GM’s current EV lineup relies on nickel-cobalt-manganese-aluminum (NCMA) cells produced through a joint venture with LG Energy Solution. However, the company is now setting its sights on a more varied battery menu. Future GM models will feature high-nickel, mid-nickel, and lithium iron phosphate (LFP) cathodes.

This diversification extends to cell formats as well. While GM will continue using pouch cells for some models, it’s also embracing prismatic cells, which are easier to assemble. The company is even reserving a small percentage of its battery production for cylindrical cells, likely destined for high-performance vehicles.

One of the most significant aspects of GM’s battery overhaul is the adoption of LFP technology. Kelty highlighted that this move could slash EV costs by up to $6,000 per vehicle. LFP batteries, already utilized by competitors like Tesla and Ford, offer a simpler and more cost-effective manufacturing process. They also sidestep the ethical concerns surrounding cobalt mining, a key component in traditional NCMA batteries.

To support its ambitious battery plans, GM is doubling down on research and development. Kelty announced the company will open a new battery R&D center in Warren, Michigan, by 2027. This facility aims to boost GM’s competitiveness against leading Chinese battery manufacturers.

The automaker isn’t going it alone, though. GM will continue its partnership with LG on battery development and has teamed up with Samsung SDI to construct a $3.5 billion EV battery plant in Indiana.

GM’s battery strategy shift comes with impressive cost-saving projections. Kelty reported that the company has already slashed battery costs to an average of $60 per kilowatt-hour from 2023 to 2024. With the introduction of LFP batteries, GM anticipates a further $30 reduction by 2025.

Will this bold move help the company reclaim its position at the forefront of the EV revolution?

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