DETROIT (Reuters) – As part of a $ 27 billion initiative to match or exceed Tesla Inc in electric vehicles, General Motors Co is working with ‘the best startups’ on next-generation EV battery technology and plant a big boost in production capacity for its new Ultium battery system, a manager said Monday.
“We’ve partnered with some great companies,” including Honda Motor and LG Chem, in electric vehicles and batteries, “said Doug Parks, GM’s executive vice president of global product development. But” we’re also looking outside the company. startups to be at the forefront of that learning curve. “
Parks said at an investor conference that GM is continuing to build its relationship with Honda, with whom the US automaker is jointly developing several future electric vehicles.
“There is a possibility for more,” Parks said. “We could expand that relationship to other segments,” including sharing combustion vehicles and platforms with Honda.
GM Chief Executive Mary Barra said nearly a year ago that the automaker had increased its spending budget for electric and automated vehicles from $ 20 billion to $ 27 billion through 2025.
Parks said much of that $ 7 billion increase is related to spending on additional production capacity for the Ultium battery, which will go into production in Ohio next year in a $ 2.3 billion joint venture with LG Chem.
With all the electric vehicles that GM has planned for North America – some 20 models by 2025 – “we need more capacity” for batteries, Parks said. “So there will be more investment after the first wave in Ohio.”
Market leader Tesla sold just under 500,000 electric vehicles worldwide last year.
Reporting by Paul Lienert in Detroit; Editing by Matthew Lewis