Yahoo Autos General Motors Drops Ultium Name, Announces New Battery Facility
General Motors announced a plan to drop the Ultium name from its EV batteries and technology, though the batteries themselves will still be used.
The company also announced plans for a new battery-cell development center, with a target of early 2027 to start building battery cells.
GM CEO Mary Barra also promised to be profitable on EVs in the future, saying the company believes EV losses peaked this year.
General Motors is looking to strike a different tone on electric vehicles moving forward. The company announced plans during its investor day on Tuesday to drop the "Ultium" name from its EV batteries and technology, which will still stick around.
Along with the name change, GM also announced plans for a new battery-cell development center at its Global Technical Center in Warren, Michigan. While it didn't provide a specific date for breaking ground, the company said the facility will be a new building, and it's targeting early 2027 to start manufacturing new battery cells.
As part of the presentation, Kurt Kelty, vice president of GM's battery cell and pack, announced that the new facility will give GM an "increased capability" to close the gap between research and development and mass production of new battery technologies. Kelty also said the new facility could reduce the development timeframe of launching new battery technology by up to a year.
Attempting to assuage investor fears over EV profit losses, GM CEO Mary Barra announced expectations for the company to turn a profit on electric cars. "We believe our EV losses have peaked this year, and we’re focused on significantly improving profitability next year," Barra said.
While she didn't offer a timeline for GM's EV sales to enter the black, Barra did add that the company expects its EV portfolio will reach positive variable profit this quarter. The term "variable profit" refers to revenue earned exceeding the cost to produce the vehicle and ignores fixed corporate costs. GM CFO Paul Jacobson echoed the sentiment, telling investors he expects $2 billion to $4 billion profit improvement from EVs in 2025.
Part of the improved margins, according to Barra, come from scaling production. "By adding EVs to our existing capacity... We now have the scale to expand the Lyriq and add new models like the three-row Cadillac Vistiq. All of this clearly separates us from competitors who haven’t launched a dedicated EV platform or built their own cell plants," said Barra. She added that the company is on track to produce 200,000 EVs in North America this year.
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