As GM continues to push towards full electrification across its light duty vehicle lineup by 2035, EV battery technology remains a major focus of development. To that end, General Motors is working to reduce the cost of its battery cells by a significant margin. Now, GM Vice President, Battery and Pack Kurt Kelty has outlined some of The General’s cost saving plans as they relate to EV batteries.
Kelty provided his insight into General Motors’ battery cell cost reduction efforts during the recent GM Investor Day event. During the presentation, Kelty discussed economies of scale with regard to the automaker’s Ultium Cells battery plants, which are operated under a joint venture with South Korean battery manufacturer LG Energy Solution. Kelty also mentioned General Motors’ overall equipment effectiveness achievements and supplier agreements, stating that GM’s battery cell costs “are and will remain as low or lower than any other OEM in North America.”
“Our combined cell and battery pack costs continue to get lower year over year,” Kelty said. “We saw a $60 per kilowatt-hour reduction on average from 2023 to 2024, and we expect another $30 per kilowatt-hour reduction in 2025. And we’re going to take those costs even lower by expanding our use of LFP. When we introduce our Gen 2 battery packs with LFP, we expect to save another $6,000 per vehicle.”
LFP, or lithium iron phosphate, differs from GM’s current Ultium battery cells, the latter of which utilize a nickel-cobalt-manganese-aluminum (NMCA) chemistry.
“With the ability to leverage LFP and mid nickel chemistry alongside high nickel, we improve our flexibility to meet customer demands and improve EV profitability,” Kelty said.
The automaker will also leverage prismatic cells, which are a type of lithium-ion battery that take a rectangular shape, thus providing greater space utilization and packaging benefits.
“By expanding the use of prismatic cells, we can simplify battery pack manufacturing and increase supply opportunities,” Kelty said.
Yet further developments include new partnerships, such as GM’s recent agreement with Samsung SDI to build a new EV battery production facility in Indiana. The new plant will require a $3.5 billion investment between General Motors and Samsung.
“By expanding our battery strategy with a common set of technologies that can be used within our existing battery pack and existing electric vehicle architecture, we can continue to improve safety and achieve the flexibility and agility to meet our battery goals,” Kelty said. “Providing optionality without increasing complexity. And matching price and performance to meet customer expectations while maximizing EV profitability.”
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it is not necessary to save, increase instead the price 100%, anyway nly ricj people buy EV and they continue doing does not matter which price, only us the poors pay attention on ECE because we with small bank accounts can not buy our own house and get the electric installation done, which the owner never will do, otherwise increase hard the monthly ate and that we can not afford. So we have to keep with our old car years and years, but the riches buy 10, 20 or more to put in garage
I can barely understand your writing. It seems you are saying GM won't pass down the savings. Well I got news for you. In their current prices, the mass market (i.e. the working class American) aren't buying EVs. Its only people that are upper middle class and up. Generally not their only car and park it next to their BMW X7 or Mercedes GLS. But the mass market cannot afford them and whether the automakers choose to accept it or not, that is where the growth in EVs lie for them to continue towards mass adaptation.
So if the automakers want their EVs to get anywhere viable, they will in their best interest do what they can to bring down the price without sacrificing much performance. Because if they don't, the Chinese will. So I will give GM the benefit of the doubt in that they care atleast somewhat for their long term existence and will follow through selling EVs at a lower more attainable price.
like said EVs is only for rich people and they sell well.
it was never to mass,,, so GM or any other manufacture canincrease the prices that is ok
we have our poor car, but not take bus to heavy supermarket buys
for example RR Spectre sells billions, every rich is buying it, but as it is not for us we do not care
It took 21 years of car development before the mass-market Ford Model T was created in 1907. I think it to be reasonable to peg the first modern EV as the Tesla Roadster in 2008 or perhaps the Model S in 2012. Either dates would put us around 2030, and that sounds about right for when we will see mass market EVs.
Excellent point, but if you observe, price isn't the major issue. PLENTY of over priced pickups out there. Not calculating "monthly gas payents". The 2 main problem with EV ownership is TERRIBLE CHARGING INFRASTRUCTURE and FAST battery draining if driving against headwind, cold weather, uphill, etc. Due to their nature, EV has a long way to go. Sure, they fit a certain crowd. That's where Akio Toyoda was spot on. Offer variety.
Do you have an iPhone? iWatch? Buy Lattes or Chipotle or smoke cigarettes? If any yes then you can afford it especially on the lower priced 2025 models. Its priorities if one has any.
6K doesn't begin to cut the price disparity EV vs ICE.
Actually, it does BEGIN to cut the price disparity. (Your exaggeration undercuts your argument.) Admittedly, there's still more to go. However, I expect as peak oil production begins to wane, we discontinue the subsidies to the oil companies, and we take even small steps to impose on gasoline its cost to the environment, the price disparity will soon disappear.
Oil companies collectively pay trillions in taxes and royalties. Repeating the lie that oil is subsidized doesn't help your argument.
Not true. The 2025 models even cheaper before credits. Look it up.
The starting price for the 2024 Chevrolet Equinox EV is $34,995
The chevy bolt ev started at $26,500. With the tax credit it was under $20,000 in 2023
Most internal combustion engine (ICE) vehicles start within similar price ranges, and critics of electric vehicles (EVs) often use this as an excuse without researching actual pricing.
The new Silverado ev starting price is right midrange of what the ice equivalent is.
Good point, but EV has its limitations. Cold weather, headwind, uphill, drains the battery very quickly. Now, add terrible and HASSLE charging infrastructure. Having to fiddle with apps and maps to locate and hoping a charger works is RIDICULOUS. TESLA has managed to make it simple and that's why they sell. Despite their higher price.
And GM is providing an adaptor with many of their newer models that will allow you to use Tesla chargers! If you have an older EV that is compatible with fast chargers, you can buy the adaptor from GM for, I believe, around $250.00. Besides this, GM has parlayed with many of the major car manufacturers, except Ford, to start manufacturing fast chargers with they will be installing across the country.
Cold weather, uphill, and headwind also decrease ICE fuel economy, and therefore, decreases range. You think ICE vehicles are immune to physics?
And GM will not pass this cost saving to customers .. they will hike MSRP prices!!
Nobody is holding a gun to your head. If you don't like the price...don't buy!
Too bad for your FUD argument, the Silverado EV is cheaper in 2025 than 2024.
Just ensure GM that a replacment battery is supported unlike what ya did to the Volts and Bolt owners and at a equal or less expense than replacing an ice transmission and or engine which the weak minded seem to forget how much they cost these days. At some point it should be as easy as changing AA and AAA batteries!
I'll give them 10 years to figure it out. But I'm not betting any money on it .
Stop blame others for the road you are on.
It’s your own asphalt!