GM will invest $ 7 billion in electric car batteries and electric trucks

Image for article titled GM rolls out $ 7 billion investment plan to build electric trucks and batteries

Photo: Bill Pugliano (Getty Images)

General Motors helped hook Americans on gas-guzzling trucks and SUVs that have been a disaster for the climate. Now, it is to get serious about a hub for electric vehicles in the midst of increased electrification efforts from other leading automakers. Tuesday the carmaker announced it will invest reasonably $ 7 billion to build a new EV battery production plan in Michigan. It will also transform another already in use factory into a major manufacturer of electric trucks.

On the battery side, GM said it is partnering with EV battery maker LG Chemical and spending $ 2.6 billion to develop a new battery cell factory that the company expects to be able to go online in 2024. The bulk of the investment (about $ 4 billion) goes to converting an existing plant to serve at the company’s main development site Chevy Silverado EV and electric GMC Sierra. Yes, they are still going to make monstrous vehicles. Hey hey, if that’s what it takes to kill the interior internal combustion engine …

In a statement, GM Chairman and CEO Mary Barra said the company’s investment decision was made based on “positive consumer response and reservations about our recent power launches.”

GM also had some help along the way. According to that New York Timesthe state of Michigan supplies GM $ 824 million in financial incentives. In return, the company claims that the new investment could create 4,000 new jobs.

The company joins a growth list of US carsmanufacturers that allegedly turn to electric cars. Ford, GM’s biggest competitor, has reportedly seen a stream of enthusiasm for its new, reasonable prissat F-150 Lyn. It also announced it would spend $ 11 billion on building three new battery factories. Stellantis—parent company of the American icons Chrysler, Dodge, Jeep and Ram—meanwhile has said that plans to allocate at least $ 35.5 billion to develop electric cars and related technology until 2025.

The storm of messages is coming after the Biden administration put one ambitious goal to ensure that electric vehicles account for half of all new car sales in the U.S. by 2030. New commitments from automakers are a good start toward this goal, but anyone who has spent more than a few minutes on a major U.S. intergovernmental road lately, will know that there is still a long way to go.

The United States also lags far behind other parts of the world in adopting electric cars, according to analysis company Canalys. In the first half of 2021, electric cars represented only 3% of new car sales in the United States. It is certainly an improvement from previous years, but still far less than 12% and 15% of sales of new cars represented in China and Europe respectively during the same period.

.

Leave a Comment