General Motors to funnel $35bn into EVs by 2025
General Motors (GM) is increasing its funding for electric vehicles (EVs) and automated vehicles (AVs) by 75% over the next five years.
Last March, the company pledged to invest $20bn in these areas by 2025. Now, it has increased that commitment to $35bn, unveiling a new mission to “become the market leader in EVs in North America and the global leader in battery and fuel cell technology”. The figure covers capital, engineering and other development costs, GM said in a statement.
The funding builds on a commitment to offer 30 pure electric models globally by the end of 2025 and to ensure that EVs account for 40% of market entries in the US – GM’s largest market – within the same timeframe. Those ambitions were announced this January as part of a longer-term vision to deliver carbon-neutral products and operations globally by 2040. The company confirmed that new pure EVs will be launched by GM’s four biggest brands – Chevrolet, Cadillac, GMC and Buick – by the end of 2022, and that nothing but zero-emission vehicles would be produced from 2035.
“We are investing aggressively in a comprehensive and highly integrated plan to make sure that GM leads in all aspects of the transformation to a more sustainable future,” the firm’s chief executive and chair Mary Barra said.
“GM is targeting annual global EV sales of more than one million by 2025, and we are increasing our investment to scale faster because we see momentum building in the US for electrification, along with customer demand for our product portfolio.”
A key EV-related investment priority will be supporting the construction of two new battery production plans in the US, in addition to two other plants in Ohio and Tennessee, where building works are already underway. Locations of the newest projects have not yet been announced. GM has signed a memorandum of understanding (MOU) with Honda to help ensure large-scale demand for the batteries.
Under that MOU, the two firms are also collaborating on hydrogen fuel cells for cars and trains.
Readers interested in comparing how different carmakers are approaching the EV transition are encouraged to read edie’s recent feature on the topic, comparing future targets and progress to date. It is worth noting that many of the largest carmakers in Europe are currently not on track to deliver against their EV commitments, according to a new analysis this week from Transport & Environment.
Join the conversation at edie’s Clean Energy & Transport Forum
Taking place on Thursday 15 July, the Clean Energy and Transport Forum is a brand-new online edie event that will connect energy and sustainability leaders from all major industries with policymakers, industry bodies, NGOs and net-zero carbon experts, to discuss what it will take to fully decarbonise our energy and transport systems.
The Department for Transport’s Parliamentary Under-Secretary of State Rachel Maclean has been confirmed as one of the keynote speakers for the event, along with The Climate Group’s chief executive Helen Clarkson, the Energy Institute’s chief executive Nick Wayth and Innovate UK’s senior innovation lead Harsh Pershad.
© Faversham House Ltd 2022 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.