GM aims for resilient EV battery supply chain

DETROIT — General Motors is working to build a resilient battery supply chain as it moves into the next phase of electric vehicle development, saying it is leveraging lessons learned during the ongoing semiconductor shortage. , CEO Mary Barra said on Thursday.

Automakers are seeking battery suppliers, many of whom are new to working together GMBarra said at the Automotive Press Association event in Detroit that starting in 2026, it will need to source materials for EV production from multiple locations. GM has learned from its approach to reserving microchips for future production, so the company is less dependent on a particular factory, she said.

Adding redundancy to your supply chain can help prevent production stoppages caused by single supplier issues, such as the COVID-19 outbreak. Malaysian chip factory taken offline last year. It will also be very important as more chips will be needed to drive the software and technology embedded in the vehicle, she said.

GM says it has struck deals with suppliers to secure all the battery materials it needs to produce one million EVs in North America in 2025.

“We want to build a winning partnership,” said Barra. “Often these are new suppliers to us, so we are excited about how we are going with it. And like I said, why am I so confident? Are we there? We will continue to build on that.”

As GM pushes forward with its electrification goals, Barra said automakers are still waiting for the Treasury Department to finalize rules on the federal EV tax credit passed as part of the Inflation Reduction Act this year. . The $7,500 credit includes sourcing battery components from North America and tiered requirements for critical minerals in the United States or countries with which we have free trade agreements.

GM wants North American small car lineup, pledging $35 billion to develop electric and self-driving cars by 2025 Zero emissions by 2035The automaker has four plants (in Ohio, Tennessee, Michigan, and a yet-to-be-disclosed fourth US location) that produce its own Ultium batteries in a joint venture with LG Energy Solution, and has a North American location. outlines plans to assemble at five factories in EV as of 2025.

“There are quite a few things that I think we’re very well positioned for, but we needed to see what the final rules were about that,” Barra said.

GM hopes to attract EV customer adoption not just through federal tax credits, but by making EVs attractive and fun to drive, she said. In addition, some states — especially California — took steps to phase out sales of new petrol cars by 2035;

According to Barra, 40% of EV orders come from first-time customers for automakers.

“There’s always been the premise at General Motors to build such a great electric car and solve the charging problem for the people they want, instead of being forced from a regulatory standpoint because that’s what you have to worry about. Because you have to see what profitability looks like,” Barra said.