General Motors to spend $35 billion through 2025 on electric and autonomous vehicles

The No 1 US automaker said it will now an additional 75 per cent on EVs and AVs over its initial commitment announced prior to the pandemic that shut down the industry.

The Detroit-based automaker said the enhanced commitment will accelerate its transformative strategy to become the market leader in EVs in North America; the global leader in battery and fuel cell technology through its Ultium battery platform and Hydrotech fuel cells; and through Cruise, be the first to safely commercialise self-driving technology at scale.

“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,” said GM chairman and CEO Mary Barra. “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,” he added.

GM first shared its vision of a world with zero crashes, zero emissions and zero congestion nearly four years ago. Key factors changing the landscape include strong public reaction to the GMC Hummer EV and Hummer EV SUV, the Cadillac Lyriq and the Chevrolet Silverado electric pickup; GM and dealer investments in the EV customer experience; public and private investment in EV charging infrastructure; and the global policy environment.  

“There is a strong and growing conviction among our employees, customers, dealers, suppliers, unions and investors, as well as policymakers, that electric vehicles and self-driving technology are the keys to a cleaner, safer world for all,” Barra said.

Today’s announcement builds on GM’s initial commitment announced in March 2020 to invest $20 billion from 2020 through 2025, including capital, engineering expenses and other development costs, to accelerate its transition to EVs and AVs. In November 2020, the company increased its planned investment over the same period to $27 billion.

GM also expects to deliver better-than-expected results in the second quarter despite the industry-wide impact of the semiconductor shortage.

The company now expects its first-half EBIT-adjusted will be between $8.5 and $9.5 billion due to continued strong demand, better-than-expected results at GM Financial, and improved near-term production from the pull forward of semiconductors from the third quarter. GM expects the second half of 2021 will continue to be complex and fluid. 

GM’s additional investments and new collaborations include accelerating Ultium battery cell production in the United States. GM plans to build two new battery cell manufacturing plants in the US by mid-decade to complement the Ultium Cells LLC plants under construction in Tennessee and Ohio. 

In addition to collaborating with Honda to build two EVs using Ultium technology – one SUV for the Honda brand said it signed a memorandum of understanding to supply Ultium batteries and Hydrotec fuel cells to Wabtec Corporation, which is developing the world’s first 100 per cent battery-powered locomotive, for the Acura brand.

Separately, GM will supply Hydrotec to Navistar, Inc, which is developing hydrogen-powered heavy trucks to launch in 2024, and Liebherr-Aerospace, which is developing hydrogen-powered auxiliary power units for aircraft. Lockheed Martin and GM also are teaming up to develop the next generation of lunar vehicles to transport astronauts on the surface of the Moon, leveraging GM’s expertise in electric propulsion and autonomous technology.

GM also confirmed plans to launch its third-generation Hydrotec fuel cells with even greater power density and lower costs by mid-decade. GM manufactures its fuel cells in Brownstown Charter Township, Michigan, in a joint venture with Honda.  

In November 2020, GM announced it would deliver 30 new EVs by 2025 globally, with two-thirds available in North America. Through the additional investments announced today, GM will add to its North America plan new electric commercial trucks and other products that will take advantage of the creative design opportunities and flexibility enabled by the Ultium Platform.  In addition, GM will add additional US assembly capacity for EV SUVs. Details will be announced at a later date.

Cruise, GM’s majority-owned subsidiary, recently became the first company to receive permission from regulators in California to provide a driverless AV passenger service to the public. Cruise also was recently selected as the exclusive provider of AV rideshare services to the city of Dubai and is working with Honda to begin development of an AV testing programme in Japan. In addition, GM Financial will provide a multi-year, $5 billion credit facility for Cruise to scale its Cruise Origin fleet. Developed through a partnership between GM, Honda and Cruise, the Cruise Origin will be built at GM’s Factory ZERO Detroit-Hamtramck Assembly Center starting in early 2023.

GM's additional spending accelerates a global race among automakers and technology companies to expand electric vehicle offerings.