DETROIT (Reuters) – General Motors Co, as part of a $ 27 billion initiative to match or exceed Tesla Inc in the electric vehicle sector, is working with “all the best startups” on next generation EV battery technology while planning a major boost in production capacity for its new Ultium battery system, an executive said on Monday.
“We are partnering with some major companies,” including Honda Motor and LG Chem, on electric vehicles and batteries, said Doug Parks, executive vice president of global product development at GM. But, “we are also looking for startups outside the company to get ahead of this learning curve”.
Parks, speaking at an investor conference, said that GM continues to build its relationship with Honda, with whom the U.S. automaker is developing several electric vehicles of the future.
“There is an opportunity for more,” said Parks. “We could extend this relationship to other segments”, including sharing vehicles and platforms with a Honda combustion engine.
GM Chief Executive Mary Barra said nearly a year ago that the automaker increased its spending budget for electric and automated vehicles from $ 20 billion to $ 27 billion by 2025.
Parks said much of that $ 7 billion increase is linked to spending on additional production capacity for the Ultium battery, which is expected to 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 – about 20 models by 2025 – “we’re going to need more capacity” for batteries, Parks said. “So there is more investment coming after the initial wave in Ohio.”
Industry leader Tesla last year sold just under 500,000 EVs globally.
Paul Lienert’s report in Detroit; Matthew Lewis Edition