GM has set a target for 2035 to phase out gas and diesel vehicles worldwide

The country’s largest automaker by sale called the 2035 date to eliminate all exhaust pollution a goal. Still, many governments around the world, from California to Japan and the United Kingdom, have pledged to ban gasoline and diesel cars by then.

GM had previously said it expects its own portfolio and the wider auto market to eventually go all-electric, but the company executives had not discussed a time frame.

The automaker is making one of the automotive industry’s biggest bets on electric vehicles. In November, it said it would increase its investment in plug-in vehicles and self-driving car technology by a third from previous plans, to $ 27 billion by the middle of the decade. That represents more than half of the planned capital expenditures at the time, the company said.

GM also said Thursday that it aims to be carbon neutral by 2040, which would mean eliminating the carbon emissions from all of its operations and the vehicles it makes and sells. About three-quarters of GM’s CO2 emissions come from the emissions of the cars and trucks it puts on the road.

GM shares rose sharply after the announcement, rising about 4% during Thursday afternoon trading.

The company’s plan to go all-electric by 2035 would significantly accelerate electric vehicle adoption beyond what most industry forecasters expect.

Research firm LMC Automotive predicts that electric vehicles will make up only 20% of global sales by 2032. RBC Capital expects electric vehicle penetration to be 43% by GM’s 2035 target.

Last year, about 2.2 million all-electric vehicles were sold worldwide, accounting for only about 3% of total sales, according to research firm EV Volumes. Analysts point to several hurdles to wider adoption, including the need for more charging stations and different infrastructure. There are also questions about whether there will be a supply crisis for raw materials needed to produce batteries, such as cobalt and lithium, as the adoption of electric vehicles soars.

Today, the higher cost of plug-in cars compared to gas or diesel vehicles is a deterrent to many buyers. GM expects that gap will be closed by the middle of the decade with advances in battery technology. It is investing in a $ 2.3 billion battery factory in Ohio in a joint venture with LG Chem of South Korea.

Due to high battery costs, GM and other automakers focused their early efforts on higher-priced luxury or sports electric cars and trucks to maintain profit margins. For example, GM’s first vehicle to use its new battery technology, the GMC Hummer pickup truck, will go on sale for around $ 113,000 when it hits showrooms later this year.

“We believe that with our scale and reach, we can encourage others to follow suit and have a significant impact on our industry and the economy,” said Ms. Barra in a LinkedIn post.

On Thursday, GM’s chief of sustainability, Dane Parker, said GM’s goal of going all-electric within 15 years depends in part on government incentives and other support to push consumers towards plug-in cars.

Incentives “really help in consumer acceptance and overcome some of the initial hurdles that consumers might have with the initial cost, as well as things like charging infrastructure,” said Mr. Parker.

Write to Mike Colias at [email protected]