GM to Work With Startups For Next-Gen EV Battery Production

General Motors Co has planned to surpass or match Tesla Inc in the electric vehicle sector, as part of a $27 billion initiative. According to an executive, the company is working with some of the best startups on next-gen EV battery technology along with

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Doug Parks, GM's executive vice president of global product development said that the brand is getting into a partnership with some great companies like Honda Motor and LG Chem, for EVs, as well as batteries.

General Motors Co has planned to surpass or match Tesla Inc in the electric vehicle sector, as part of a $27 billion initiative. According to an executive, the company is working with some of the best startups on next-gen EV battery technology along with a plan of boosting the production capacity of its plant for its new Ultium battery system.

Doug Parks, GM's executive vice president of global product development said that the brand is getting into a partnership with some great companies like Honda Motor and LG Chem, for EVs, as well as batteries. The further said that they are also looking for startups outside the company to get on the front edge of that learning curve. At an investor conference, Doug Parks also said that GM will continue to build its relationship with Honda, with whom the U.S. carmaker is manufacturing several future electric vehicles in a partnership. Parks said that there is an opportunity for more if both the companies are able to extend their relationship to other segments as well, which includes sharing combustion-engine vehicles and platforms with Honda.

Mary Barra, GM's Chief Executive said that about a year ago the brand had said that it has increased its spending budget on electric vehicles and automated vehicles from $20 billion to $27 billion through 2025. Commenting on this, Parks said that much of that $7 billion increase is associated with spending on an additional production capacity for the Ultium battery. The Ultrium battery is will be manufactured next year in Ohio in a $2.3 billion joint venture with LG Chem.

Parks said that the company GM has planned around 20 electric vehicle models by 2025 for North America, and so, they will be needing more capacity for batteries. Therefore, after the initial wave in Ohio, there will be more investment coming in. Tesla in 2020 had also sold just under 500,000 EVs globally.

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