GM’s Q4 2023 earnings report revealed that full production has been achieved at the Ultium Cells plant in Warren, Ohio, operating at 100 percent capacity by the end of the quarter.
A quarter ago in Q3 2023, the Ultium Cells Warren facility was working at 75 percent of full output, with 100 percent predicted to be reached in November 2023, an expectation that has proven accurate.
GM states in its earnings deck that reaching full production at Ultium Cells Warren, and increasing cell manufacture at the second plant to begin operations, will now be able to supply 100 percent of battery needs for EVs in the North American market. Using cells and complete Ultium batteries produced in North America will make the automaker’s electric vehicles eligible for the full $7,500 Clean Vehicle Credit going forward.
In addition, supply chain adjustments for Ultium battery production is expected to make all Chevy Blazer EV and Cadillac Lyriq crossovers produced from this point in time forward eligible for the U.S. EV tax credit. During the Q4 earnings presentation CEO Mary Barra said approximately 25,000 Chevy Blazer EV and Cadillac Lyriq units were produced with batteries that make them ineligible for the credit, though GM offers a rebate on these vehicles.
GM says it will gain a “competitive advantage from developing the North American EV supply chain ecosystem,” with the battery plants beginning production as a major piece of this process. The GM Ultium Cells plant in Spring Hill, Tennessee is launching production in Q1 2024, the second facility to begin mass manufacture of battery cells.
Production will ramp up over time and potentially reach full capacity as well by the end of 2024. The Spring Hills plant will soon be shipping battery cells to assembly plants, where the individual cells are fitted into battery modules and then installed in the EVs they will supply power to.
A third facility, Ultium Cells Lansing, is currently under construction and is expected to begin operations late this year. The Lansing plant held a job fair this week, seeking to attract new recruits to fill out its planned roster of approximately 1,700 employees.