Despite fluctuating consumer demand and a changing regulatory environment, GM says it remains committed to electrifying its light-duty vehicle lineup by 2035. Naturally, all those EVs will require a mountain of batteries to power them, and as such, GM has invested billions of dollars into building several U.S.-based Ultium Cells battery production facilities. Notably, these new facilities are currently not running at full capacity.
During a recent conference call announcing the end of funding for Cruise’s robotaxi operations, GM CFO Paul Jacobson was asked an off-topic question about the automaker’s Ultium Cells battery plants. According to Jacobson, GM’s Ultium Cells plant in Warren, Ohio plant is currently running at 80 percent capacity, while the Ultium Cells plant in Spring Hill, Tennessee is running at 40 percent.
Based on these remarks, it appears as though GM has more battery cell production capacity than it does battery cell demand. With this in mind, GM’s decision to sell its stake in a third Ultium Cells plant currently under construction in Lansing, Michigan to joint venture partner LG Energy Solution makes sense.
In a statement made earlier this month, Jacobson said that the sale coincided with “a lot of demand” on the behalf of LG Energy for new EV batteries, adding that GM has “a little bit of excess capacity” with regard to EV batteries.
“This is a great example of what that partnership can mean,” the CFO added.
The Ultium Cells plant in Lansing is now nearly complete, and GM expects to recoup its investment in the facility. The transaction is expected to finalize in the first quarter of 2025. Meanwhile, battery production at the Ultium Cells facilities in Warren and Spring Hill will continue, with new battery units providing the juice for GM EV models like the Cadillac Lyriq, Chevy Blazer EV, Chevy Equinox EV, Chevy Silverado EV, GMC Sierra EV, and GMC Hummer EV.
In August, GM inked a deal with Samsung SDI to build a new battery facility in Indiana, with reports indicating a $3.5 billion investment between the two companies.
Comments
Whomp whomp
Could be pushing out diesels and V8s
The Warren plant has an annual capacity of 41GWh and Spring Hill was expanded to to 50GWh facility, so at 80% and 40% respectively, that suggests the current annualized output is about 52.8GWh.
That’s enough to make ~ 600k 10-module packs (Equinox EV, Prologue EV, Blazer LT/RS, Optiq) or 495k 12-module (Lyriq, Blazer SS, Vistiq) or 425k 14-module (Brightdrop, Silverado / Denali standard range) or 298k 20-module (Silverado / Denali extended range, Hummer) or 248k 24-module (Silverado / Denali max range, Hummer 3X, Escalade) or some combination thereof.
They’ll doubtless increase toward capacity as necessary. And when the Bolt comes they’ve already said they will use sourced LFP batteries, so that doesn’t come from this supply.
GM is in a good position here.
Layoffs coming all over gm.
My Lyriq is outstanding.
Lyriq was named 2025 German Luxury Car of the Year by German automotive writers.
Lyriq is the best selling luxury EV in the United States.
Priced at $59,990 and then with $7,500 tax credit = $52,490; then $1,000 off for Costco membership, it’s a terrific value .
They may soon need all that battery capacity.
Still losing money on every GM EV?
Don’t worry about the losses on EV’s. Guys like you, loving their diesels and V8, will pay for the EV technology progress in US. Nothing wrong with that if you ask me. The rest of the world will move on the adoption of the EV’s at a different pace. I like that GM has positioned itself to play a significant role in both markets, staying profitable as well.
Want sugar or Sweet N’ Low with that Kool Aide?