GM Will Increase Investment in EVs and AVs to $35 Billion
GM recently announced that it will be making an investment of $35 billion in autonomous vehicles and EVs between 2020 and 2025. This is 75 percent higher than the $20 billion GM initially said it would invest back in March 2020.
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Why is GM investing more money?
Since drivers have responded strongly to the reveals of the Cadillac Lyriq, GMC Hummer EV, and Chevy Silverado electric pickup, GM has decided to increase its investment in EVs and AVs. It is planning to become the leading automaker of EVs in North America as well as the first one to offer safe self-driving technology to the public.
“GM is targeting annual global EV sales of more than 1 million by 2025, and we are increasing our investment to scale faster because we see momentum building in the United States for electrification, along with customer demand for our product portfolio,” said GM Chair and CEO Mary Barra.
GM is using the $35 billion to construct two new battery cell manufacturing plants in the U.S. by 2025. These plants should be built soon after construction finishes on the Ultium Cells LLC plants in Ohio and Tennessee. The automaker will reveal the locations of the new plants at a later date.
While GM is already supplying Honda with Ultium technology to build two EVs, it just announced that it will also be providing Wabtec Corporation with Ultium batteries and Hydrotec fuel cells. This will aid in Wabtec Corporation’s development of the first completely battery-powered locomotive.
GM will supply Hydrotec to Liebherr-Aerospace and Navistar, Inc., which will use hydrogen power in aircraft and heavy trucks, respectively. In collaboration with Lockheed Martin, the company is also creating next-gen lunar vehicles for astronauts to drive on the moon.
Back in November 2020, GM revealed that it would launch 30 new EVs by 2025, two-thirds of which will make their way to North America. Due to its investment increase, the automaker will now add new electric commercial trucks to North America and enable U.S. facilities to assemble more electric SUVs.
GM’s majority-owned subsidiary, Cruise, is also the first company with permission to offer a self-driving passenger service in California. The automaker is helping to grow the Cruise Origin fleet by offering a $5 billion credit facility.
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As we approach GM’s self-imposed 2025 deadline for several of its goals, we at The News Wheel will keep you up to date on any developments and new EVs announced.
Amanda Drago lives in West Chester, Ohio with her wonderful family, which includes her adorable dog, Coco. Amanda recently graduated from Miami University with degrees in both marketing and creative writing. However, if she was ever forced to change career paths, she imagines that she would train dogs for movies. In her spare time, she enjoys reading, writing, and watching Netflix. She also has a special place in her heart for theatre and purchases tickets to as many shows as she can. See more articles by Amanda.